Charles Schwab Announces 5% Employee Pay Increase

American multinational financial services firm Charles Schwab (NYSE: SCHW) announced on Thursday evening that it is implementing a 5% pay rise for employees “in recognition of their unwavering service to clients and each other throughout the pandemic.”

In the letter to employees, the company’s executive council said: 

You all have gone above and beyond to ensure our clients are well cared for, our culture remains strong, and our business remains sound under the most extraordinary circumstances. Thank you once more from all of us on the Executive Council for helping this company live up to its promise.

Charles Schwab

The company has seen a new high in the number of investors so far in 2021. As a result, the firm’s core net new assets climbed to a record of $257 billion in H1 2021, over twice the number gained during the same time last year. In addition, 4.8 million new brokerage accounts were opened during the period, which represented Charles Schwab’s second and third consecutive quarter of over a million new accounts. 

Walt Bettinger, President and CEO of The Charles Schwab Corporation, stated:

Our teams’ focus and dedication have resulted in outstanding results for our clients and growth for the company. This increase is a way to reward our talented employees for their contributions and their relentless commitment to see the world through clients’ eyes, even during the most challenging times.

The company said the pay rise will apply to most of its employees and will take effect in late September this year. However, the executive council or colleagues participating in Schwab’s incentive compensation plans will not be included in the pay increase. 

The Westlake, Texas-based company also revealed it is taking additional steps to address Covid-19 concerns and provide flexible working for its employees in the future. Due to the current circumstances, Schwab has delayed a total return to the office until January 2022. Employees are currently able to work at home or return to the office voluntarily. Once the return to the office goes ahead, the company said employees will have flexible working hours using a hybrid work schedule.

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