Bank of America plans to raise the minimum wage of its 205,000 employees this year, eventually boosting it to $20 per hour within the next two years.
CEO Brian Moynihan said Tuesday on MSNBC that the bank will increase pay to $17 per hour starting May 1st, climbing incrementally until it lands at $20 in 20
The announcement comes just one day before Moynihan will join JPMorgan Chase’s Jamie Dimon and four other big bank CEOs to testify before the House Financial Services Committee on the security of the county’s banking system post-crisis.
Some have suggested that the move will help fend off criticism about the enormous paychecks it dishes out to top execs, including Moynihan, who made $26.5 million last year.
But Moynihan said on MSNBC that the company has enjoyed success and it’s only fair to share the reward with employees, something it has sought to do in the past few years.
Bank of America raised its minimum wage in 2017 to $15 per hour. It is also among a number of banks that pledged to raise wages in late 2017 after President Donald Trump signed tax reform that decreased the corporate tax rate.
And it’s worth noting that just last month, BofA was named one of the best workplaces in the financial services space by Fortune, with 82% of employees saying the bank was a great place to work, mostly because of its contribution to local communities.
“If you get a job at Bank of America, you’ll make $41,000 [a year]”, Moynihan said. “With the success our company has…we have to share that success with our teammates.”