22,000 JPMorgan Chase workers are getting a raise

JPMorgan Chase is giving 22,000 workers a raise.America's largest bank is also opening up 400 branches in new ...

Posted: Jan 23, 2018 2:08 PM
Updated: Jan 23, 2018 2:08 PM

JPMorgan Chase is giving 22,000 workers a raise.

America's largest bank is also opening up 400 branches in new markets and hiring thousands of new workers as part of a $20 billion spending spree unveiled on Tuesday.

The company said the five-year investment was made possible by the federal tax overhaul and a "more constructive regulatory and business environment." Banks have been among the biggest winners from the corporate tax cuts and President Trump's efforts to cut red tape.

JPMorgan promised to hire 4,000 employees in the United States and to ramp up its small business lending by $4 billion.

For those already working at JPMorgan, the bank plans to boost pay for tellers, customer service representatives and other mostly frontline workers to between $15 and $18 an hour. New York, San Francisco and Boston employees will get $18 an hour, while pay in Chicago, Detroit and Wilmington, Delaware, will go to $16.50.

The pay hikes, amounting to an average of 10% for 22,000 employees, come as the minimum wage in dozens of states and cities has increased.

JPMorgan also plans to open up 400 new branches over the next five years in 15 to 20 new markets. The new locations will employ about 3,000 people.

"When we enter a community, we enter it with the full force of JPMorgan Chase behind it," CEO Jamie Dimon said in a statement. "We hire people. We lend to and support local businesses."

Related: CEOs at Davos love the Trump tax cuts

JPMorgan said it will boost its community-based philanthropic investments by 40% to $1.75 billion over the next five years.

Like other banks, JPMorgan's branch network has been shrinking in recent years as mobile and online banking gain popularity.

JPMorgan, which has 5,130 branches across 23 states, will continue to close branches "where there is overlap or decreased foot traffic," a bank spokeswoman said. She declined to say whether JPMorgan's overall branch count will continue to get smaller.

Dimon has been one of corporate America's loudest cheerleaders for the tax overhaul. He gushed about the tax law earlier this month, calling it a "significant positive outcome for the country" that will "ultimately benefit all Americans." Dimon also chairs the Business Roundtable, a powerful lobbying group that took out a multimillion dollar advertising blitz to champion tax reform.

Banks generally pay high taxes, making them among the biggest beneficiaries from the tax rate going from 35% down to 21%.

Dozens of other major companies, including banks like Wells Fargo, Bank of America and PNC, have announced plans to either boost wages or pay bonuses due to the tax law.

JPMorgan plans to pay an annual "award" of $750 later this month to 100,000 employees who earn less than $60,000 a year. These bonuses, announced internally in December, have been paid for the past few years, a spokeswoman said.

Related: Wall Street, not Main Street, is the real tax winner

The JPMorgan pay hikes, combined with ones by Walmart, raise hope that some of the windfall from the tax law will trickle down to workers after years of stagnant wages.

Wall Street is a slam-dunk winner from the tax law, which is projected to spark around $450 billion worth of stock buybacks as well as fatter dividends and an uptick in mergers and acquisitions. The tax overhaul has already helped propel the stock market, with S&P 500 zooming 6% so far this year to all-time highs.

Yet less than 10% of the S&P 500 has announced plans to share the wealth with workers through wage hikes or bonuses. And some of the ones that have are likely to share just a small percentage of their winnings.

Minnesota Coronavirus Cases

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Confirmed Cases: 25870

Reported Deaths: 1097
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Hennepin8738633
Ramsey3189134
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Nobles15585
Anoka147073
Dakota138859
Washington67033
Olmsted65411
Kandiyohi5051
Rice4802
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Clay43529
Mower3662
Wright3322
Todd3300
Sherburne2482
Carver2242
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Steele1670
Blue Earth1480
Martin1325
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Nicollet8810
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Lyon711
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Koochiching90
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Mahnomen61
Yellow Medicine60
Redwood60
Renville50
Traverse40
Grant40
Red Lake40
Clearwater30
Hubbard30
Lac qui Parle30
Roseau30
Houston20
Stevens10
Lake10
Kittson10

Iowa Coronavirus Cases

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Confirmed Cases: 20264

Reported Deaths: 574
CountyConfirmedDeaths
Polk4406134
Woodbury281737
Black Hawk175946
Linn96779
Dallas92924
Buena Vista9181
Marshall90118
Johnson6169
Wapello60714
Muscatine56341
Crawford5422
Tama40828
Scott36810
Dubuque35121
Louisa34611
Pottawattamie29610
Sioux2900
Jasper26317
Wright1940
Washington1928
Warren1530
Plymouth1392
Allamakee1204
Story1181
Mahaska9712
Poweshiek918
Henry722
Bremer696
Boone670
Des Moines661
Clinton651
Clarke640
Taylor590
Guthrie533
Cedar491
Hamilton450
Benton441
Webster441
Monroe385
Shelby370
Jones370
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Osceola340
Iowa330
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Madison292
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Emmet190
Hardin190
Lucas191
Delaware191
Humboldt181
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Hancock160
Franklin150
Page140
Pocahontas140
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Appanoose143
Audubon131
Jackson130
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Winnebago110
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Union90
Van Buren90
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Calhoun40
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