BB&T Corp (NYSE:BBT) reported additional investments in its communities and associates made possible via the tax reform package recently finalized into law. In purview of the latest corporate tax rate declines, the company’s executive management team has taken the decision to share related benefits.
As per the reported benefits, the company will raise minimum hourly pay rate to $15 from $12 per hour, effective January 1, 2018. It will offer a special, one-time bonus of $1,200 to be paid in this month, for nearly three-fourths of its associates, most of whom don’t receive commissions or incentives. BB&T would be donating $100 million to its philanthropic fund to help charitable organizations in their communities.
The reported total cost of the plan is $152 million, with amount of $15 million linked to the pay rate jump, $37 million as a one-time bonus and sum of $100 million to company’s philanthropic fund. The bonuses and pay increase don’t apply to the Executive Management team or senior leaders.
Kelly S. King, the CEO and Chairman of BB&T, expressed that by far and away, their associates are their most vital asset. They are the major reason they are able to serve their customers each and every day in a remarkable way. They have worked so hard, particularly over the previous few years, to position company for continued success. So, he is thrilled to reward them for their dedication and hard work.
Besides one-time bonus and the minimum wage hike, BB&T continues to provide attractive compensation package to associates, even in the challenging economic scenario of the past few years. King expressed that the company’s objective is to make the world an improved place to live, hence it makes sense to share these advantages and continue leaving a positive impact in the communities they serve.