Fifth Third Bancorp will pay more than 13,500 employees a bonus and raise the minimum wage for its workforce to $15 after the passage of the Republican tax plan that will cut the bank's corporate tax rate.
Fifth Third is the second company to announce a bonus for employees because of the tax plan. AT&T said earlier Wednesday that it would pay 200,000 U.S. employees $1,000 each and increase its capital spending budget by $1 billion.
Wells Fargo, meanwhile, also said it would be boosting its minimum wage for employees to $15 an hour. The San Francisco-based bank also said it would target $400 million in donations to community and nonprofit organizations next year.
Cincinnati-based Fifth Third, the fifteenth largest U.S. bank by asset size, said the tax cut allowed it to re-evaluate its employee pay and pass along some of the windfall. Nearly 3,000 workers will see hourly wages rise to $15. The $1,000 one-time bonus is expected to be paid by the end of this year, the bank said, assuming President Donald Trump signs the bill into law by Christmas.
Senior managers and top executives are excluded from the special payments. "It is good for our communities, employees and Fifth Third Bank," said CEO Greg Carmichael in a statement.
“We want to invest in our most important asset – our people,” Carmichael said. “Our employees drive our reputation, our business and our success.”
Carmichael said the higher wage is an important step to help support individuals, their families and the communities in which the bank operates.
USA TODAY Network reporter Alexander Coolidge contributed to this report.