Following the footsteps of other major corporations, Bank Of America announced it will give bonuses to more than half of its employees Friday due to the passing of the GOP tax reform bill.
The company will give $1,000 bonuses to around 145,000 employees across the U.S., according to an announcement that came moments before President Donald Trump signed the tax reform bill at the White House Friday. The news was sent out by Chief Executive Officer Brian Moynihan in a memo to employees.
“Against the backdrop of the progress we made this year, I want to highlight the December 20 passage in the United States Congress of the most fundamental tax reform since 1986. When the legislation is signed into law by the President, these reforms will impact our company in different ways,” Moynihan said in the memo. “For instance, we will see an immediate reduction in earnings as a result of a write-down of the value of our deferred tax asset. Beginning in 2018, we will see benefits from the tax reform, too, in the form of lower corporate tax rates.”
Moynihan said that employees in the U.S. who make up to $150,000 per year will be receiving their $1,000 by the end of 2018, citing the GOP tax reform bill as one of the reasons.
“In the spirit of shared success, we intend to pass some of those benefits along immediately. U.S. employees making up to $150,000 per year in total compensation – about 145,000 teammates – will receive a one-time bonus of $1,000 by year-end,” Moynihan stated in the memo.
Wells Fargo, the largest money-lender in the U.S., also said it will donate $400 million to community and nonprofit organizations in 2018, following the announcement by the aerospace company and defense contractor Boeing, which said it will donate $300 million for charitable projects, employee training and education, and facilities improvements for Boeing locations.
Fifth Third, which is the 15th largest U.S. bank by asset size, said the tax cut allowed the company to re-evaluate its employees salaries. Along with the raise, Fifth Third said they will distribute a one-time bonus of $1,000 to more than 13,500 employees. (RELATED: More Businesses Celebrate Tax Reform By Investing In Employees)
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