Zions Bancorporation has disclosed that following the tax reforms that were carried out in the United States towards the end of last year, ongoing compensation for over 40% of the company’s employees would be increased starting this month. Close to 80% of the firm’s employees will also be awarded with bonuses of $1,000 in the course of this year.
In order to benefit the communities in which the firm does business, Zions Bancorporation will also contribute approximately $12 million to its foundation. Last year the beneficiaries of Zions Bancorporation Foundation included educational programs, affordable housing projects, homeless shelters, food pantries, youth programs and the United Way.
With the contribution to Zions Bancorporation Foundation the financial institution expects that it will incur a rise in noninterest expense of around $12 million in 2017’s Q4. Compensation adjustments will be incorporated as an expense in 2018.
Zions Bancorporation has also disclosed that a thorough review of the changes in the tax law is ongoing and the impact will be announced in detail during the release of 2017’s fourth quarter reports. As a leader in lending to small businesses the Minneapolis, Minnesota-based bank with assets worth more than $65 billion operates in several states in the west and this includes Wyoming, Washington, Utah, Texas, Oregon, New Mexico, Nevada, Idaho, Colorado, California and Arizona.
Other financial institutions that have announced bonuses or wage hikes include the Providence, Rhode Island-based Citizens which will offer approximately 12,500 employees a cash bonus of $1,000. Citizens which has assets worth more than $151 billion will also contribute approximately $10 million to its foundation which concentrates on initiatives that range from hunger prevention to financial literacy.
On the other hand, Regions Financial, a bank with more than $123 billion in assets has indicated that it will contribute $40 million to its foundation while hiking the minimum wage it pays its employees to $15 per hour before the year ends.
Besides U.S. financial institutions, airlines such as Southwest and American have also revealed that they will give their employees bonuses of $1,000 follow the overhaul of the tax code. The payments will be made this quarter.
“This is not an action we take lightly, when balanced against the returns our shareholders/owners demand and deserve. But we believe it is the right thing to do for our team, which ultimately benefits our shareholders too,” said Doug Parker and Robert Isom, the chief executive officer and president of American Airlines respectively, in an address to employees.