Bank plans wage hike and bonuses after tax reform
A bank with a major West Michigan presence plans to raise pay and issue bonuses for certain employees after passage of the new federal tax bill.
Cincinnati-based Fifth Third Bancorp, the holding company for Fifth Third Bank, said late yesterday it plans to increase its minimum hourly wage for all employees to $15 and distribute one-time bonuses of $1,000 to more than 13,500 employees.
About 75 percent of the bank’s workforce will receive pay raises or bonuses.
Fifth Third Bank CEO Greg Carmichael said the decision was spurred by the tax new legislation that includes a reduction in corporate tax rates designed to spur economic growth.
Carmichael said the tax cut allowed the bank the opportunity to re-evaluate its compensation structure and share some of those benefits with its “talented and dedicated workforce.”
“We want to invest in our most important asset: our people,” Carmichael said. “Our employees drive our reputation, our business and our success.”
Fifth Third Bank said it does not currently have a set minimum wage but aims to offer “competitive compensation across positions and markets.”
Once the legislation is signed into law, almost 3,000 hourly employees will see their pay increase to $15 an hour.
The one-time $1,000 bonus is expected to be distributed by the end of the year, provided President Donald Trump signs the bill before Christmas.
Senior managers and executive leadership are excluded from the planned increases.
“It is good for our communities, employees and Fifth Third Bank,” Carmichael said.
Fifth Third Bancorp’s principal subsidiary Fifth Third Bank was established in 1858.
As of Sept. 30, the holding company had $142 billion in assets and operated 1,155 branches and 2,465 ATMs in 10 states: Ohio, Michigan, Indiana, Illinois, Kentucky, Florida, Tennessee, West Virginia, Georgia and North Carolina.
Fifth Third Bank has more than 200 Michigan branches, with more than 100 branches in West Michigan.
The bank employs more than 2,600 people in Michigan, including 1,900 in West Michigan.