Bank of America announced on Tuesday that it raises the hourly minimum wage of its US employees to $25 by 2025. Brian Moynihan, CEO said that it costs a few hundred million a year but it is an investment. This increment can provide a great standard of living for our teammates.
Moynihan also added that paying more also helps give employees a career mindset and ultimately breeds loyalty. This way shareholders get paid back in this initiative. The key is for big companies like ours to set a standard. It is a big success for the community.
Biden also signed an executive order lifting the minimum wage for federal contract workers to $15 in early 2022 from the current level of $10.95 last month.At Bank of America, along with the employee changes announced Tuesday, the bank will also require its vendors and suppliers to pay their employees at least $15 an hour. This affects more than 2,000 vendor firms and 43,000 vendor employees. Already, 99% of vendors are now paying $15 an hour minimum.