Bank of America Corp. announced Tuesday it will increase its hourly minimum wage to $25 by 2025.
INBOX: “Today, Bank of America announced it will raise its U.S. minimum hourly wage to $25 by 2025.”
— David Gura (@davidgura) May 18, 2021
Bank of America also said its U.S.-based vendors must pay their employees at least $15 per hour. Over 99% of Bank of America’s vendors meet that threshold already, according to the press release. (RELATED: McDonald’s Raises Minimum Wage Amid Nationwide Labor Shortage)
Bank of America CEO Brian Moynihan told CNN it will cost the company a “few hundred million dollars” per year but said it’s an investment in its teammates.
“It provides a great career opportunity for people coming in, that is $40,000 plus a year now and will be at $50,000 with full benefits,” Moynihan added. “It gives them a career mindset which helps the shareholders also.”
“The key is for big companies like ours, is to set a standard.”
Bank of America raised its minimum wage to $20 per hour in March of 2020, the press release stated. Since 2010, Bank of America’s minimum wage has increased by more than 121% — or about $14 per hour.
“A core tenet of responsible growth is our commitment to being a great place to work which means investing in the people who serve our clients,” Sheri Bronstein, chief human resources officer at Bank of America, said in the release. “That includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.”