The second largest bank in the United States by assets announced that it has raised the minimum wage for its employees. It is planning to hike the wage from $17 to $20 over a period of two years. “If you get a job at Bank of America, you’ll make $41,000” a year, Chairman and CEO Brian Moynihan told MSNBC on Tuesday. “With the success our company has … we have to share that success with our teammates.”
The minimum pay wage will be $17 from May 1 and will rise at a higher rate, the CEO of the company said. There’s not only one relief for the employees, but the bank also has frozen health care prices for the lower paid employees.”Banks in particular, they’re compelled to raise wages somewhat to recruit staff. So this is something they would be doing anyway, because there’s a tighter labor market and that’s what happens,” says Ben Zipperer, an economist at the Economic Policy Institute.
Bank of America, CEO Moynihan earned $23M in the year 2017 that’s about 250 times more than medium bank employee. The rise in wage will insulate the executives of the company from criticism due to the huge gap in pay. “It’s a good thing to see Bank of America acknowledge that base wages — not metrics and incentives — are the surest way to improve the banking experience and the lives of its workers,” said Nick Weiner, organizing coordinator at the Committee for Better Banks.
The Bank of America CEO, along with the top executive officers of the banking sector will face the House Financial Services Committee in Washington Wednesday over the issue of gender gaps, stock buybacks and financing for private prisons and oil and gas pipelines.
Two years ago, the company raised its minimum wage from $13.5 to $15.”The average rate for all U.S. hourly employees is significantly above this level,” it said. CEO Brian received a 15% raise to $26.4M for achieving annual profit. The company employs 205,000 people.
Companies like Walmart and Amazon has raised their minimum wages over the years. Whereas the federal minimum wage is $7.25/hour. But the bill is passed to double up the wage and it’s still happening over the journey of six years.
Recently, Bank of America Merrill Lynch had expressed the views on Boeing 737 manufacturing troubles and the delay it has been experiencing. BofA estimates that the delay will last for six to nine months which is more than the expected delay of three to six month. This downgrade by Bank of America has stumbled the stock of Boeing by 4%.