Pay to be tiered based on geography, with highest-cost markets increased to $20 per hour; pay increases highlight company’s commitment to its employees
Wells Fargo & Company (NYSE: WFC) today announced plans to raise minimum hourly pay levels in a majority of its U.S. markets. Minimum pay will be tiered based on various factors, including the cost of living in different markets, with the minimum hourly pay ranging from $15 to $20 based on employee location. The pay increases will take effect by the end of 2020.
“Companies have an obligation to help communities and employees reach their potential. An important part of this is ensuring we are doing our part to pay employees at a rate which recognizes the difference in cost of living across the country,” said CEO Charlie Scharf. “Our employees are our most valuable resource, and these pay increases are just one way we are investing in our people and ensuring that Wells Fargo continues to be a great place to work.”
The change will increase pay for more than 20,000 U.S.-based employees. The amount of the hourly increase takes into account the cost of living in each Wells Fargo market. For example, employees working in the cities of New York or San Francisco will receive a minimum hourly pay rate of $20, while employees in Charlotte or Des Moines will receive a minimum of $16 per hour. Wells Fargo will also evaluate the hourly pay for employees whose pay is at or near the new minimum hourly wages announced today. In recent years, Wells Fargo has increased its minimum hourly base pay in the U.S. by 32%, most recently to $15 in March 2018.
Today’s announcement is in addition to other investments Wells Fargo has made to enrich compensation programs and enhance benefits offerings for employees, especially those U.S.-based employees who are at the lower part of the pay range. For example, this year, the company made changes to make healthcare more affordable for all U.S-based employees at the lower part of the pay range, lowering or keeping premiums flat for about 70% of employees. Wells Fargo pays on average 84% of total annual healthcare premiums for its U.S.-based employees who earn less than $40,000 annually, which equates to approximately $5,700 and $16,600 for individuals and families, respectively.
Earlier this year, Restricted Share Rights vested for employees across the globe who received awards in 2018. The company had awarded these Restricted Share Rights to 250,000 employees, recognizing their contributions and commitment to Wells Fargo and its customers and clients. This investment amounts to approximately $2,400 pre-tax per full-time employee at the time of vesting.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,400 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 32 countries and territories to support customers who conduct business in the global economy. With approximately 260,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2019 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories. Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo.
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