U.S. Bancorp, Zions Bancorp., Citizens Financial Group and Regions Financial Corp. on Tuesday became the latest large institutions to announce pay raises attributed to the tax reform bill signed by President Trump last month.
U.S. Bancorp said it will give nearly 60,000 employees a $1,000 bonus and raise its hourly minimum wage to $15 as a result of the overhaul, which lowered the corporate tax rate from 35% to 21%. The $459 billion-asset company will also make unspecified “enhancements” to employee health plans in 2019.
“We believe that tax reform is positive for the U.S. economy because it provides an immediate opportunity to benefit our employees, our communities and our customers,” CEO Andy Cecere said in a press release.
Additionally, the Minneapolis-based bank said it will make a one-time contribution of $150 million to its corporate foundation. The U.S. Bank Foundation invests in community development projects and financial education, and makes charitable contributions. The company also committed to making additional capital investments in enhancing its technology and marketing.
“It is a privilege to make this decision to benefit our communities,” Cecere said.
Zions, meanwhile, said in a press release that it plans to offer one-time, $1,000 bonuses to 80% of its employees, and also increase compensation for more than 40% of its employees. No details were provided about the Salt Lake City company’s minimum wage.
The $65 billion-asset company will also contribute $12 million to its corporate foundation, which in 2017 donated to a range of nonprofits, including the United Way, homeless shelters and other charitable causes.
Citizens, of Providence, R.I., announced that it would provide a one-time, $1,000 cash bonus to about 12,500 employees, or just over 70% of its workforce. The $151 billion-asset company will also make a $10 million contribution to its corporate foundation, which focuses on initiatives ranging from financial literacy to hunger prevention.
The $123 billion-asset Regions Financial plans to hike its minimum wage to $15 by the end of 2018, and make a $40 million contribution to its charitable foundation. The Birmingham, Ala., company also committed to increasing its 2018 capital budget by $100 million, or 50%, compared to 2017, as it boosts investments in its facilities and technology.
Several other large and regional banks — including Bank of America, Wells Fargo, PNC Financial Services Group, SunTrust Banks and Fifth Third Bancorp — have announced similar plans for their tax savings.