News: US banks pay special compensation to front-line workers

Compensation & Benefits

US banks pay special compensation to front-line workers

Wells Fargo, Citigroup, Bank of America among others are extending special compensation to their front-line workers amidst Coronavirus outbreak
US banks pay special compensation to front-line workers

Wells Fargo & Co is paying its full-time domestic employees a pre-tax payment of US$600 and a US$300 bonus to its part-time employees.

Front-line employees like branch workers, call-center staff and technology specialists who are required to come into the office as others work from home because of the coronavirus outbreak will receive an additional US$200 per pay period starting April 17 for up to five paychecks.

Charlie Scharf, Chief Executive of Wells Fargo & Co shares, “Management has also decided not to pay out a discretionary profit-sharing 401(k) contribution for 2019, citing the bank's financial performance last year and the "extraordinary environment.”

Banks have largely been excluded from government-mandated shutdowns across the country because they are considered an essential industry by the federal government, meaning most bank branches, call centers and trading floors have stayed open even as many firms send their employees home.

Earlier on Monday, Citigroup said it would pay US$1,000 to US employees who make US$60,000 or less in base salary.

JPMorgan Chase & Co, the largest US bank by assets, said in a memo on Friday it would give workers who are staffing branches and call centers through the coronavirus pandemic a one-time US$1,000 bonus.

Bank of America Corp will also pay an additional US$200 per pay period to front-line workers in branches, call centers and operation centers, with enhanced overtime pay.

Separately, US Bank said it would give some employees a temporary 20 percent hourly wage increase during these “unprecedented times.” The move will cover more than 30,000 employees, including those working at branches, operations and contact centers.

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Topics: Compensation & Benefits

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