Bank of America ‘willing to pay what it takes’ to hire top talent, CEO says
Bank of America wants to attract and retain top talent, and the bank is willing to pay extra for it, CEO Brian Moynihan said Thursday.
“We want that kind of talent in our business and we’re willing to pay whatever it takes to get it,” Moynihan told CNBC’s Jim Cramer in a “Crazy money“interview.
Moynihan’s comments came after Bank of America said on Tuesday it would increase its minimum wage at $ 25 an hour by 2025. The move also puts pressure on US suppliers who work with Bank of America to pay their employees at least $ 15 an hour.
“We are raising salaries because, frankly, we want our teammates to have a career mindset when they join us and then stay with us,” said the executive.
Moynihan also said the bank – the second largest in terms of assets in the United States – has seen a positive reception among staff since it began considering raising wages ten years ago. This is the third year in a row that the Charlotte, North Carolina-based bank has announced a plan to raise wages.
The Bank of America’s minimum wage rose to $ 20 in March 2020 from $ 17 in 2019. Meanwhile, the employee turnover rate fell to 7% in 2020 from 11% the year before, according to reports. provided to shareholders last March.
“The revenue is down, people are more engaged in the business, they are doing a better job for our teammates,” Moynihan said Thursday. “You can’t think of a year [in] what these teammates must have done a lot for our clients and clients, which so far last year was in a pandemic. “
Moynihan also told Cramer that the company did not lay off branch employees during the Covid-19 pandemic.
Shares of Bank of America slipped 0.24% on Thursday to close at $ 41.87. The title has risen 38% since the start of the year.