New in 2018: Higher wages and increasing our giving
CEO Tim Sloan announces an increase in Wells Fargo’s minimum wage, expanded support for small businesses and homeowners, and increased philanthropic giving.
Wells Fargo CEO Tim Sloan has announced several significant ways the company will continue to support economic growth in 2018, pledging the following actions once tax reform is signed into law:
- Increasing the minimum hourly pay rate to $15 per hour for U.S.-based team members in March 2018. The new rate is an 11 percent increase over the current minimum hourly rate of $13.50, which Wells Fargo put in place in January 2017. The company also will review pay for other U.S.-based team members to ensure pay remains appropriate relative to the adjusted minimum hourly rate.
- Targeting $400 million in donations to nonprofits and community organizations in 2018, a substantial increase of approximately 40 percent from 2017.
- Expanding Wells Fargo’s support for small businesses and homeowners. This includes targeting $100 million in capital and other resources over the next three years to support the growth of diverse small businesses, and $75 million in 2018 to the NeighborhoodLIFT® program, which advances sustainable homeownership and neighborhood revitalization. The company’s $75 million target for the NeighborhoodLIFT program in 2018 is double the amount of the program in 2017.
- Wells Fargo has made an $18 million gift to Habitat for Humanity International to support the organization’s services and to help with disaster rebuilding efforts in Texas, Florida, and Puerto Rico.
- Maintaining a long and productive relationship with United Way Worldwide. Wells Fargo has made an $18 million gift to support United Way’s efforts to advance the health, education, and financial stability of the underserved by helping 1 million people find jobs over the next five years.
“All of these developments are rooted in our commitments to team member engagement, corporate citizenship, and helping our customers succeed financially,” Sloan said in a companywide message.
“These announcements come at a crucial juncture,” Sloan continued. “As the full implications of newly passed federal tax measures become clearer, we look forward to identifying additional opportunities we will have to grow the U.S. economy, support our millions of customers and communities, invest in our team, and continue to execute our business strategies and provide long-term value to all our stakeholders.”
The announcements build on the momentum the company has been generating this year, Sloan said. Those include:
- A focus on offering market-competitive compensation, career development opportunities, a broad array of benefits, and a strong collection of work-life programs. Just this year, Wells Fargo has added four additional paid holidays per year and announced plans to grant restricted stock awards to approximately 250,000 team members that will vest in two years subject to grant terms. These awards are generally equivalent to 50 shares of Wells Fargo stock for eligible full-time team members and 30 shares for eligible part-time team members. Additionally, in 2016 we enhanced our parental, critical caregiving, and backup adult care paid leave programs.
- Consistently ranking among the top U.S. corporate cash donors. “Our increased giving will ensure the continued positive impact we make on the causes we cherish and the communities we call home,” Sloan said. Beginning in 2019, Wells Fargo will target 2 percent of its after-tax profits for corporate philanthropy.
- Continuing to support the growth of diverse small businesses. Wells Fargo’s target to invest $100 million over three years extends the Wells Fargo Works for Small Business®: Diverse Community Capital program. That program, established in 2016, provides capital, technical assistance, financial services, mentoring, and other resources for diverse small businesses that may not qualify for conventional bank loans.
- Making sustainable homeownership a reality for thousands through the NeighborhoodLIFT® program, which delivers down payment assistance and financial education to homebuyers in collaboration with NeighborWorks® America and local nonprofit organizations. Since February 2012, LIFT programs have helped create nearly 15,500 homeowners in 57 communities across the country, and more than 52,000 individuals have received homebuyer education from NeighborWorks America members. The majority of LIFT homebuyers are in the low-to-moderate income range.
Full details are available in a news release on wellsfargo.com.