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At Citigroup and Wells Fargo, shareholder proposals to disclose more about lobbying garnered double-digit percentages of the vote. PNC basked in environmentalists' admiration after agreeing to leave business on the table.
April 28 -
The nation's largest banks are again under attack this time over how they treat their own rank-and-file employees.
April 9 -
With nearly a third of bank tellers on public assistance nationwide, labor advocates are pushing banks to increase pay for workers at the low end of the spectrum.
May 5 -
Trevor Burgess, CEO of C1 Financial, brings an investment banker's irreverence to the normally decorous business of community banking. But he's produced a record that backs up his brash talk.
December 14
The banking industry, which has long faced criticism for its executive pay practices, is getting more attention for how it compensates its lowest-paid workers, as more banks take a stand on the issue of minimum wage.
Two institutions —
The shift has thrown some bankers into a broader debate over how to address pay for positions such as tellers and other support staff. Executives’ opinions are mixed, illustrating a desire to help employees meet basic expenses — and a concern about the broader economic tradeoffs.
"The country has become very awakened to the issue of income inequality," said Keith Mestrich, chief executive at the $3.7 billion-asset Amalgamated. "The economic recovery has not been shared, and I think people are realizing that."
The union-owned bank made headlines in August when it raised its minimum wage, and then
Other banks, such as Washington Federal in Seattle, were forced to raise wages to comply with a new city laws. Seattle
"We believe that the new minimum wage law in Seattle will not have a material financial impact on Washington Federal, however we are concerned about the ability of service companies, such as restaurants, to pass along the cost," Lisa King, a senior vice president at the $14.3 billion-asset company, wrote in an email, adding that the law could also discourage companies from adding new jobs.
The recent focus on wage floors comes as labor groups have scored political victories in other cities.
Los Angeles
The federal minimum wage has also become a focal point in the presidential campaign. Democratic candidates have
As the issue has gained steam, the banking industry has been a target for activist groups.
Most banks offer generous compensation packages for top executives, critics say, while asserting that boosting wages — either voluntarily or under a municipal ordinance — has little impact on the bottom line.
"Fair wages is one of our main demands," said Renata Pumarol, an activist with the Committee for Better Banks, which
Nearly a third of retail banking employees have jobs with a median hourly wage below $15, according to
"As the movement around raising wages has picked up pace, I think the banking industry has been largely overlooked," said Irene Tung, senior policy researcher with the National Employment Law Project.
C1 Financial
Bigger banks have also come under scrutiny. A story last week in the
A spokesman for the $92 billion-asset Key, which is based in Cleveland, declined to comment.
As executives take a fresh look at compensation for tellers and other lower-wage posts, some say that, overall, it’s not a pressing issue for the banking industry.
"Generally speaking, banks tend to offer their employees more generous compensation levels than a minimum wage, so a minimum wage increase wouldn’t necessarily have a large-scale impact on our industry," Beth Mills, a spokeswoman for the California Bankers Association, wrote in an email.
The median wage for tellers in California is $13.75 an hour,
Still, Mills said her association is paying attention to the issue as more cities in the state have hiked the minimum wage.
While Washington Federal is "skeptical" about the outcomes associated with a $15 minimum wage policy, King said the company is proud to be part of a broader effort to assist low-wage employees.
"It’s great to live in a city that’s willing to experiment and take risks to at least try to solve some of our society’s most pressing problems," King said.