June 7, 2023

Bank of America wants to attract and retain the best talent, and the bank is ready to pay extra for it, CEO Brian Moynihan said Thursday.

“We want that kind of talent in our company and we’re willing to pay what it takes to get it,” said CNBC’s Moynihan Jim Cramer in a Mad Money interview.

Moynihan’s comments came after Bank of America announced Tuesday that it would raise its minimum wage to $ 25 an hour by 2025. The move also puts pressure on U.S. providers to work with Bank of America to pay their employees at least $ 15 an hour.

“We are raising wages because we honestly want our teammates to have a professional attitude when they come to us and then stay with us,” said the managing director.

Moynihan also said the bank – the second largest by assets in the US – has been positively received by employees since considering raising wages a decade ago. This is the third year in a row that the Charlotte, NC-based bank announced a plan to increase wages.

Bank of America’s minimum wage rose from $ 17 in 2019 to $ 20 in March 2020. Turnover decreased from 11% last year to 7% in 2020, according to shareholders last March.

“Sales have fallen significantly, employees are more committed to the company and do better work for our teammates,” said Moynihan on Thursday. “You can’t imagine a year [in] what these teammates had to do a lot for our clients and customers, what was in a pandemic last year until now. “

Moynihan also told Cramer that the company did not lay off branch workers during the Covid-19 pandemic.

Bank of America shares were down 0.24% on Thursday, trading at $ 41.87. The share has gained 38% since the beginning of the year.