Company announces initial actions to support economic growth with tax reform
Wells Fargo & Company (NYSE: WFC) today announced an expansion of its
ongoing investments in team members, communities, small businesses, and
homeownership, pledging the following actions once tax reform is signed
into law:
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Raising the minimum hourly pay rate for its team members to $15 per
hour.
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Targeting $400 million in donations to community and nonprofit
organizations in 2018. The company also announced that beginning in
2019, it will target 2 percent of its after-tax profits for corporate
philanthropy.
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As part of this expanded philanthropy, targeting $100 million in
capital and other resources over the next three years to support the
growth of diverse small businesses and $75 million in 2018 to its
NeighborhoodLIFT® program, an innovative public-private
collaboration focused on sustainable homeownership and neighborhood
revitalization.
“We believe tax reform is good for our U.S. economy and are pleased to
take these immediate steps to invest in our team members, communities,
small businesses, and homeowners,” said President and CEO Tim Sloan. “We
look forward to identifying additional opportunities for Wells Fargo to
invest, as we continue to execute our business strategies and provide
long-term value to all our stakeholders. As the nation’s largest small
business lender and residential mortgage provider, we understand our
significant role in helping grow the economy.”
Investing in our team members
The company’s increased minimum hourly pay rate of $15 for U.S.-based
team members goes into effect in March 2018. The new rate is an 11
percent increase to the current minimum hourly rate of $13.50 that the
company announced in January 2017.
“We’re ensuring that Wells Fargo is a great place to work by offering
market-competitive compensation, career development opportunities, and a
broad array of benefits,” Sloan said. “In addition to today’s
announcement, over the past year we have added four additional paid
holidays per year; enhanced our parental, caregiving, and backup adult
care paid leave programs; and announced plans to grant restricted stock
awards to approximately 250,000 team members that will vest in two years
subject to grant terms. These awards are generally equivalent to 50
shares of Wells Fargo stock for eligible full-time team members and 30
shares for eligible part-time team members.”
Expanding our philanthropic commitment
The company’s plan to target $400 million in donations to nonprofits and
community organizations in 2018 is an increase of approximately 40
percent from 2017. Wells Fargo already is one of the top corporate cash
donors, ranking first among financial institutions and third among all
U.S. companies in a 2016 report (most recent ranking) by The
Chronicle of Philanthropy.
“We understand the important role we play in helping our communities, so
we will continue to identify additional opportunities where Wells Fargo
can make a difference,” Sloan said. “Wells Fargo’s increased
philanthropy will have a positive effect on the causes and communities
we support and further enhance our Corporate Social Responsibility
efforts, which will continue to focus on advancing diversity and social
inclusion, creating economic opportunities in underserved communities,
and accelerating the transition to a lower-carbon economy and a
healthier planet.”
Supporting more small businesses
As part of this increased philanthropy, the company will target
investing $100 million over three years, beginning in 2018, to provide
access to capital to diverse small businesses through the continuation
and expansion of the Wells Fargo Works for Small Business®:
Diverse Community Capital (DCC) program. The program provides access to
capital, technical assistance, financial services, mentoring and other
resources for diverse small businesses that may not qualify for
conventional bank loans. Since 2016, the DCC program has invested more
than $55 million for diverse small businesses, including those owned by
African Americans, Asians, Hispanics, LGBT individuals, veterans, Native
Americans, and women.
Creating more homeowners
The company’s $75 million target for the NeighborhoodLIFT®
program in 2018 is double the amount of the program in 2017. This
innovative program delivers down payment assistance and financial
education to homebuyers in collaboration with NeighborWorks®
America and local nonprofit organizations. Since February 2012, LIFT
programs have helped create nearly 15,500 homeowners in 57 communities
across the country, and more than 52,000 individuals have received
homebuyer education from NeighborWorks® America members. The
majority of LIFT homebuyers are in the low-to-moderate income range.
Gifts to Habitat for Humanity and United Way
As announced earlier this week, Wells Fargo gifted $18 million to Habitat
for Humanity International to support its services and to help with
disaster rebuilding efforts in Texas, Florida, and Puerto Rico, and an
additional $18 million to the United
Way Worldwide to support the organization’s efforts to advance the
health, education and financial stability of the underserved by helping
one million people find jobs over the next five years. Both 2017 gifts
will help to build stronger, more resilient communities by increasing
access to basic needs such as stable housing, steady employment, and
education.
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, insurance, investments, mortgage, and
consumer and commercial finance through more than 8,400 locations,
13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has
offices in 42 countries and territories to support customers who conduct
business in the global economy. With approximately 268,000 team members,
Wells Fargo serves one in three households in the United States. Wells
Fargo & Company was ranked No. 25 on Fortune’s 2017 rankings of
America’s largest corporations.