The PNC Financial Services Group, Inc. announced improved compensation, including a $1,500 bonus and a $15 an hour minimum wage, following the signing of the tax reform bill. The legislation reduced the tax rate paid by corporations.
PNC was joined by Bank of America, which has a variety of operations in Delaware and BB&T. PNC is one of Delaware’s largest full-service banks and financial services companies in announcing the $15 an hour wage
Banks and other large corporations have been facing criticism that the tax bill will simply allow buybacks of stock and higher dividends that would not directly affect workers.
PNC plans the following:
- Provide for employees in the defined benefit pension plan an additional $1,500 to their existing pension accounts.
- Provide a $1,000 cash payment to approximately 47,500 employees in the first quarter of 2018. This will impact all employees below a certain compensation band, representing approximately 90 percent of PNC employees.
- Raise the minimum pay rate to $15 an hour by the end of 2018, accelerating the goal that has been underway for some time.
- Make a $200 million contribution to the PNC Foundation, which supports early childhood education through PNC’s Grow Up Great® initiative.
“The tax reform law creates an opportunity to reward our employees who are working hard each day to serve our customers, build strong relationships in our communities and create long-term value for our shareholders,” said William S. Demchak, PNC’s CEO. “The board’s decision to recognize our employees and support our communities is reflective of our commitment to PNC’s success.”