Most likely the government stimulus made this choice more plausible. I can see how it's easier to justify forgoing the profit sharing when nearly everyone is getting 1200 from the Federal government anyway. Seems like a rational, but disappointing step towards preserving the stockholder dividend.
Happy for my $600, grateful I don't need it for survival.
So their lives on the frontline are worth $200 a paycheck. Really about $120 after taxes. Dont tell me they are s
upposed to just go out and get other jobs. Really? Try doing that during a pandemic. I'm sure you will get nabbed up quickly. Give the frontline and phone people a break. They work hard and basically are risking their lives. But oh, that's ok for not enough to pay for a weeks worth of groceries. Any money is better than none but call it what it is. A PR stunt!!
As you have stated it is discretionary profit sharing. Meaning they do not have to give it every year as stated in the team member handbook under the 401k section. I must agree that it is unfortunate that they have the ability to provide us with full benefits in these trying times. Yet they are choosing to tighten the purse strings in favor of the shareholders. We shall see what major changes this event brings about for Wells Fargo as a whole.
To the person who made the comment "or the contractors, which cost us in IT between 75 and 195 an HOUR". You realize that the actual IT contractors hourly rate is usually only between $40 - $60 per hour. They have to have super skills for an hourly rate greater than that. The rest of the money paid for a contractor goes to the contracting company that you are working through, to support that other company and THEIR employees. Also most contractors have no paid vacation and VERY poor benefits plans of through that contracting company. Any benefits end when the contract is up. Better to just hire them as full time employees and pay way less for their skills and service.
Dear knowledgeispower, yes, we read it and we know.
If the bank had suspended all 401k contributions that would get media attention and probably regulator attention since the regular match is a defined benefit and the profit share is discretionary. That is not the point. The point is that this a stealth expense reduction, the annual match has occurred for all 5 years I have been here, this is a lame backdoor guise.
Based off the comments I am reading. It’s safe to assume that many of you didn’t go in and read the full disclosure. You will still be receiving the 6% matching for the 401k plan. The only compensation that was omitted was the 1% profit sharing, which only happens annually. I’m almost positive this is how they are able to allocate funds to cover this “hazard pay.”
SOME people are getting $600 hazard pay. NO ONE is getting the 401k distribution. The company is profitable enough to do BOTH, it is a choice to reallocate benefit, and in doing so potentially reduce expenses to give more back to investors... many people are missing the point.
or the contractors, which cost us in IT between 75 and 195 an HOUR
I’m sorry but my partner and a lot of my friends are out of work because of the virus so it feels a little elitist to complain that the company is going to give us $600 instead of adding to the 401k especially when you consider they had another huge settlement last year. I get the long term gains on the profit share would exceed the $600 but cmon guys let’s have some perspective lol
What would be refreshing is in lieu of eliminating profit sharing, they eliminate the huge bonuses that the longtime EIT people are paid ON TOP of their already inflated salaries. It honestly makes no f-ing sense why the run of the mill meeting hopping 'engineers' in EIT that has been here for twenty years are paid the outrageous bonuses they receive.
To the person who thinks investors and dividends keep you employed, you are mistaken.
It is customers.
Other businesses aren’t going to survive the pandemic not because they don’t have investors, they will go under because they do not have customers. And your theory about being a go to is not supported by the stock price relative to peers.
Some of you are Oliver Twist, sad really... grateful for sc-aps and admiring of billionaires who would be more likely to throw you in front of a bus and steal your porridge.
Fellow employees...in these trying and uncertain times, I'm grateful that WFC is able to give us something when other companies won't even be able to survive this mess.
And for those "concerned" about the past dividend payouts, guess what helps keep us employed and a 'go to' company for individual and institutional investors? Our dividend and yield. Guess what? We all can invest in WFC for that same dividend if we wanted to reap those rewards.
I'm taking my share and saving it for a rainy day and holding on to it for when the economy does recover.
Peace
Wow.. a whole $600 less taxes... So helpful... Would be more helpful if you front loaded PTO or something more tangible.
Ungrateful
So WF net $19B in 2019, AND paid $30B in dividends. But a big fat no to you and your teensy $1000 401k match.
The hazard pay is going to be something like $250MM, and the 401k match probably would have been $400-500MMish.
Dear All WF Employees, you are collectively not worth 3% of NET profit.
Don’t want to look a gift in the mouth but BB&T/Truist is giving $1,200.00 per employee who makes less than 100k. And my profit sharing would have been more. 😕 WF you can do better, we made 19 Billion last year.
The profit sharing contribution to our 401ks would have been worth much more in the long run, especially with current stock prices.