How Does Bank of America’s Minimum Wage Compare to Other Financial Institutions?
Bank of America (BoA) reported on Tuesday that by 2025, the minimum wage for its U.S. workers would be raised to $25 per hour.
The Charlotte, North Carolina-based bank also reported that it would mandate its suppliers around the country to pay workers at least $15 an hour, more than double the national minimum wage of $7.25.
This decision would impact the company’s 2,000 distributor firms in the United States, which employ about 43,000 people. On Tuesday, the bank announced that almost all businesses are now paying workers $15 an hour.
BoA CEO Brian Moynihan told CNN’s Poppy Harlow on Tuesday that the bank decided to increase the minimum wage as part of a commitment to maintaining a “great standard of living for our teammates,” explaining that the bank made the decision as part of a commitment to maintain a “great standard of living for our teammates.” “We spend a couple hundred million dollars a year on it, but it’s a wise investment.
“It’s important for large corporations like ours to set the bar. We believe it is part of our responsibility to share our achievements with our communities.”
After raising the rate to $17 an hour in 2019 and then to $20 in March 2020, BoA, the second-largest U.S. lender, has more than doubled the minimum wage since 2010.
Since 2019, all four of the country’s largest banks have increased their minimum wage for workers, but BoA is the only one that has publicly committed to a figure of $25 per hour.
The largest U.S. lender, JPMorgan Chase & Co, raised its minimum wage to between $16.50 and $20 an hour in 2019, with the exact sum depending on the cost of living in each state. Employees in Washington, D.C. are required to be paid at least $18 per hour.
The bank’s CEO Jamie Dimon said in a 2019 interview with Yahoo! Finance about the decision: “We’ve got to give people more of a living wage,” and reiterated that “we look at it every year and determine if we’re going to compete or not.”
In an April 2019 shareholder message, Dimon expressed his support for increasing the minimum wage for all American workers, writing: “In the United States, 40% of workers earn less than $15 per hour, while 5% earn more. This is a condensed version of the information.