A number of large companies are taking their tax reform windfall and sharing the wealth with their employees, including increasing pay rates and offering bonuses. Fox Business reports on some of the more notable companies, including Apple, AT&T, Home Depot, Wal-Mart, The Walt Disney Company, and more. Some of the ways in which companies are using the tax reform money are:
Apple – Employees below senior level received bonuses of $2,500.
AT&T – More than 200,000 of its employees are eligible for a $1,000 bonus. AT&T Chairman and CEO Randall Stephenson said in a statement: “Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world. This tax reform will drive economic growth and create good-paying jobs.”
Home Depot – Will pay U.S. hourly employees a bonus up to $1,000. Craig Menear, chairman and CEO of the company, said in a statement: “This incremental investment in our associates was made possible by the new tax reform bill.”
JetBlue – Will give $1,000 to each of its 21,000 crewmembers, excluding CEO and executive level employees. JetBlue President and CEO Robin Hayes said in a letter to company employees: “We believe these tax changes will be positive for our company and provide us the opportunity to do good things for our crewmembers, customers and shareholders.”
Lowe’s – The home improvement retailer is giving hourly employees bonuses of up to $1,000 as well as expanded benefit plans.
Starbucks – The coffee chain is giving its U.S.-based hourly and salaried workers a raise in April and awarding workers stock grants worth a total of more than $100 million to those employed as of January 1, 2018.
Southwest Airlines – Awarding a $1,000 cash bonus to all of its full-time and part-time employees and donating $5 million to charitable causes. Southwest Chairman and Chief Executive Officer Gary Kelly said in a statement: “We applaud Congress and the President for taking this action to pass legislation, which will result in meaningful corporate income tax reform for the transportation sector in general, and for Southwest Airlines, in particular.” Kelly continued: “We are excited about the savings and additional capital, which we intend to put to work in several forms — to reward our hard-working employees, to reinvest in our business, to reward our shareholders, and to keep our costs and fares low for our customers.”
Wal-Mart – The big box retailer increased hourly employees’ pay to $11 per hour and is giving one-time $1,000 bonus payments to workers, depending on the length of their service.
The Walt Disney Co. – Giving employees $1,000 cash bonuses and invested $50 million in an education program to cover tuition payments for hourly employees. Disney CEO Bob Iger said in a statement: “I am proud we are directing approximately $125 million to our cast members and employees across the country and making higher education more accessible with the launch of this new program. I have always believed that education is the key to opportunity; it opens doors and creates new possibilities. Matched with the $1,000 cash bonus, these initiatives will have both an immediate and long-term positive impact.”