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.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 161516

Reported Deaths: 3916
CountyCasesDeaths
DeSoto10863104
Hinds10705207
Harrison7624114
Jackson6774131
Rankin6303114
Lee557798
Madison5311112
Forrest405587
Jones388589
Lauderdale3754149
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Washington3421108
Lamar310350
Lowndes265168
Oktibbeha262763
Bolivar254686
Panola243754
Neshoba2333124
Marshall229451
Leflore216492
Monroe216278
Pontotoc213631
Lincoln203267
Sunflower198156
Warren189559
Tate187251
Union179626
Copiah176141
Pike170860
Pearl River168170
Itawamba166637
Scott166030
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Alcorn161529
Coahoma160044
Prentiss159034
Simpson156954
Grenada149545
Adams148852
Leake146244
George138326
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Tishomingo116444
Newton114929
Chickasaw112632
Tallahatchie101227
Clay98527
Clarke96954
Jasper90023
Stone85115
Calhoun82413
Montgomery80726
Walthall80430
Carroll78115
Lawrence76814
Smith76516
Yalobusha75728
Noxubee74817
Perry70127
Greene66023
Tunica64019
Amite61815
Jefferson Davis60818
Claiborne59716
Humphreys56119
Benton51018
Quitman5107
Kemper50019
Webster49514
Wilkinson42522
Jefferson39012
Franklin3866
Choctaw3757
Sharkey33517
Issaquena1254
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Alabama Coronavirus Cases

Cases: 264199

Reported Deaths: 3831
CountyCasesDeaths
Jefferson35310515
Mobile20626372
Madison14521153
Tuscaloosa13897173
Montgomery12844246
Shelby1127878
Baldwin9501138
Lee807167
Morgan740555
Etowah704870
Marshall695358
Calhoun6939126
Houston559140
DeKalb521843
Cullman490650
St. Clair466557
Limestone462446
Lauderdale452257
Elmore440070
Walker3914112
Talladega386157
Jackson373523
Colbert347948
Blount323146
Autauga294542
Franklin265534
Coffee260023
Dale247355
Dallas236832
Chilton235445
Covington234834
Russell23433
Escambia208832
Tallapoosa192692
Chambers189154
Clarke165422
Pike165215
Marion150236
Winston146325
Lawrence139936
Pickens129720
Geneva12929
Marengo127824
Bibb127038
Barbour121729
Butler121142
Cherokee108224
Randolph108022
Fayette102216
Hale102132
Clay95527
Washington94222
Henry9097
Monroe85311
Lowndes82930
Cleburne80914
Macon77522
Crenshaw73830
Lamar7348
Conecuh73215
Bullock71120
Perry7037
Wilcox65918
Sumter60122
Greene45818
Choctaw43620
Coosa3854
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