Fifth Third Bank Announces a Wage Hike, Bonuses After GOP Tax Bill Passage
Business experts are reacting to a decision by Fifth Third Bank to raise its minimum wage to $15 and give most of its employees a $1,000 bonus. The Cincinnati-based company says it wants to share some of the savings it will get under the GOP tax bill.
But Deborah Mitchell, who teaches marketing at the Ohio State University, says don't expect the bank's move to turn into a movement.
"We'll see, but I think there's a lot of pressure, even with the largess that comes with a tax cut to maximize profitability and turn that profitability over to shareholders."
A spokeswoman for Fifth Third says the company will spend about $25 million on the bonuses and raises. That's equal about 1.5 percent of the company's net profit last year. The decision came yesterday as AT&T and Comcast announced similar plans to issue bonuses in light of the tax overhaul passing.