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Published: Sat, July 16, 2016
Economy | By Melissa Porter

JPMorgan Chase CEO Jamie Dimon says bank it will raise minimum pay


Jamie Dimon arrives to testify before a Senate Banking Committee hearing on Capitol Hill in 2012.

Lake said overall performance in the oil and gas sector had improved as oil prices have stabilized, but that some individual companies are still struggling.

Typically, the lowest-wage workers at a bank are bank tellers and customer service people.

"Our minimum salary for American employees today is $10.15 an hour. nearly $3 above the current national minimum wage", Dimon wrote. The company also offers benefits worth about $11,000 a year, she said. President Barack Obama raised the minimum wage for federal contract workers to $10.10 an hour in 2015, and earlier this year, California and NY moved to raise their statewide minimum wages to $15 an hour.

The New York Post commented on the pay raise, noting that the 18,000 employees should not only be thanking Dimon, but owe James DeBello a big thank you as well. "Wages for many Americans have gone nowhere for too long", Mr Dimon wrote in The New York Times.

Mr Dimon said the move "enables more people to begin to share in the rewards of economic growth".

USA crude CLc1 prices were up 1.3 percent to $45.33 a barrel. The same can be said of JPMorgan's wage hike.

The wage increase at JPMorgan Chase comes after Starbucks' announcement on Monday that it will raise base pay for employees by five percent in October.

The retailers cited growing competition for workers and a tight labor market for their decisions. Not surprisingly, low-wage workers in states that have recently raised minimum wages have seen faster gains than those in states that have left minimums unchanged. Los Angeles, San Francisco, and Seattle have passed laws that will raise the minimum wage to $15 an hour over time.

"Their trading results exceeded expectations, particularly driven by post-Brexit activity".

Dimon's total pay for 2015 rose to $27m from $20m a year ago.

Before the vote, Dimon had warned that JPMorgan might have to move thousands of employees out of the country if Britain voted to leave the EU. For the current quarter the company has highest EPS estimates of $1.54 and low forecast is $1.34.

But bank tellers and customer service representatives have always been a low-paid sore spot for the industry.

If the Brexit materializes into anything more severe, as many experts suspect it will, then the big banks will be in trouble.

This is undeniably good news.

That has fed into populist anger aimed at Wall Street.

"If there is one industry that can afford to give its workers an honest living wage, it's the banking industry", said Keith Mestrich, President and CEO of Amalgamated Bank in a statement.

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