Survey: Few big companies planning wage hikes after GOP tax plan

Survey: Few big companies planning wage hikes after GOP tax plan
© Greg Nash

Few large companies are planning to reward workers with bonuses or wage hikes as a result of the passage of the Republican tax plan in December, despite a few high-profile announcements, according to a CNBC survey.

The survey, published Wednesday, contacted the companies that make up the S&P 100 to determine which would boost worker pay, provide bonuses or increase domestic investment in direct response to Trump-backed tax reform.

Out of the 100 companies, just 9 responded affirmatively, saying they would use the money saved from corporate tax cuts to increase worker pay or invest in charitable causes.


Twenty-one firms responded with no comment, while the same number responded with generic statements that did not commit to specific details on worker pay or domestic investment.

The nine companies committed to boosting worker pay included: AT&T, Walmart, Wells Fargo, Comcast, Boeing, Bank of America, PNC Financial, and U.S. Bancorp.

Of those companies, just two, Walmart and Wells Fargo, pledged to raise pay for some workers permanently. The rest, with the exception of Boeing, committed to one-time bonuses of $1,000.

Boeing responded to the survey by pledging to boost domestic investment by an additional $300 million, echoing plans announced last month.

A few other companies, including Goldman Sachs, Verizon, Walgreens and Intel, said they were still analyzing the bill and planned to make announcements in the coming weeks.

The GOP tax plan was signed into law by President TrumpDonald TrumpSenators introduce bipartisan infrastructure bill in rare Sunday session Gosar's siblings pen op-ed urging for his resignation: 'You are immune to shame' Sunday shows - Delta variant, infrastructure dominate MORE last month amid promises from Republicans that it would be "rocket fuel" for the economy, boosting growth and worker wages.

Earlier Wednesday, the health insurer Humana announced it would raise the hourly minimum wage for all its employees as a result of the GOP tax plan.

The lower corporate tax rate “provides Humana with the opportunity to make an investment in our employees, using the proceeds from tax reform to further the long-term financial health and well-being of our employee population,” the company said in a statement provided to The Hill.

Earlier this month, Walmart, the nation's largest private employer, announced all on one day that it was raising its minimum starting salary to $11 an hour and giving $1,000 bonuses to some long-term employees, but also laying off thousands of workers and closing scores of Sam's Club stores.

In November, before the tax-reform law was passed, the director of the White House Economic Council appeared surprised when a group of CEOs indicated they were unlikely to increase capital investment as a result of the plan.