Comerica Bank, a financial services firm based in Dallas, will raise its minimum wage to $15 an hour and give about 4,500 employees a one-time $1,000 bonus.
The firm says it was able to make these compensation changes, which go into effect in January, because of the new U.S. tax reform bill, which lowers the employer tax rate to 21%, from 35%. The company has $72 billion in assets under management as of Sept. 30.
Comerica declined to share what the minimum wage was prior to the increase.
“We’re honored to be able to give back to our colleagues some of the benefit that our bank is receiving from the 2017 tax reform package,” says Ralph Babb, Comerica chairman and CEO. “When it comes to our team, the goal is to create a workplace where the best talent seeks employment. By having a highly competitive compensation package, and offering a range of development and other internal opportunities, we are doing just that.”
The one-time bonus will be applicable to non-officer employees, which the company describes as any worker below a vice president title.
Comerica says it will use the tax benefit to invest in other benefits, such as tuition reimbursement, training and development, and retirement offerings.
“By sharing this tax savings with our colleagues, we believe we are helping to create an economic stimulus, which also benefits our communities,” Babb says. “As a company, we have the opportunity to further invest in our infrastructure, which benefits our customers as well.”
Register or login for access to this item and much more
All Employee Benefit News becomes archived within a week of it being published
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access