Wells Fargo to Eliminate 401(k) Match for High-Paid ...
In a memo to employees from human resources, Wells said the changes will include a new effort to seed retirement plans for employees making less than $75,000...
https://advisorhub.com/wells-fargo-to-eliminate-401k-match-for-high-paid-employees-sources/
: @1ziq
Good!
@1xtx
That's precisely the point. That's what they want to do.
@1ziq+17y562Km in all fairness, there is some regulation around this. If upper earners seem to be making bigger strides than lower earners, some corps even claw back the profit sharing contributions to 401ks.
I don’t think a lot of you know how the bank makes money. Most of the money is made from interest on credit cards and loans, from Consumer and Commercial Banking. A huge majority of people who work in these groups do not make $250,000. I would also say that there is no relationship between salary and revenue generation. Some of the biggest salaries are in risk management.
FAs in WIM like to believe they are very important and generate lots of revenue. But in reality, their expenses are really high and they just don’t have the volume of the main businesses. What’s more, The cost of compliance in WIM because of FINRA and such is huge. WIM generates the lowest net income of all the businesses. I am guessing Asset Management will not be the only unit up for sale.
If someone is making 250000+ that means they are bringing 700,000+ as REVENUE to the bank. If you take away reasons for them to work here, that 700k goes right out the window and into the hands of a competitor.
"In a memo to employees from human resources, Wells said the changes will include a new effort to seed retirement plans for employees making less than $75,000..."
So Wells has taken it upon themselves to "redistribute" $$$ 2 lower income employees/typical liberal mindset of punishing high income employees who have obviously been doing their jobs according 2 plan thus receiving a higher salary!
@1ltv you are not right in the head. The people over 250M are the ones MAKING the money FOR the Bank! And the bigger issue is its not like they can just add to their 401K there is a cap so this is a huge cut.
There is a difference between making this amount vs the millions. And while I do not make this much I still can realize much of the value of their work. This place will not do better by pitting groups against each other.
so if anything, it will make most sense for most folks to just do catchup contribution in December, right? Why bother sooner if there's a 25% chance you get cut.
I don't see value in people in this salary range. Also their bonuses are ridiculous (like 40%+), so bye bye.
Well I guess if people keep giving feedback maybe they will go back on the annual thing as well.
Literally the keystone cops are in charge of this place.
Not laid off, sorry, I meant if you're fired, retire or voluntarily leave the bank, You forfeit the match.
I can't believe they kept the annual contribution. That's what screws people the most. So if you get laid off on December 8th, you don't receive any match on any contribution. Smoke and mirrors.
They reversed the decision today. 6% match is back regardless of comp level.
Amateurs....
Worst CEO hire ever. It will get far worse before it gets any better. Grow a pair though, Charlie, and just own that your new 401k plan takes more away from everyone than it actually gives back. And I love your new strategy of taking away 401k matches, freezing salary increases, and cutting bonuses. Good luck keeping any high level leaders or decent sales folks at Wells. My resume is officially being updated. I want no part of this insanity.
I think the new rule is you have to be employed on 12/15, not 12/31.
Glad I waited a year just to find out WF will not be matching 401K contributions. Definitely will be looking to jump to another Firm when the opportunity presents itself. This is not the industry standard by any means. They presented it as if they were robing the rich to pay the poor and buried the headline that all contributions are now annual and if you aren’t around, you don’t get paid. That is really how they are eliminating expenses. All this with no communication from the CEO and instead just a system generated email from HR. I feel very valued now thanks!
The move to annual match is messed up, but par for the course currently with Wells to save a buck wherever they can with no cares about the impact to employee morale or engagement.
Good move cutting it for over 250k, terrible move on annual match.
Really dumb to take a tax-free (until retirement) benefit from workers in high tax brackets. Those are the most valuable benefits those workers have.
People who make more than $250K care about putting as much money away pre-tax as they can.
The big impact I see is the 6% match will no longer be applied quarterly, instead will be made at year end. And only if still employed on 12/31. So if you get let go 12/30 you don't get that 6% match for the year.
I make over 250k and this has accelerated my plans to start looking elsewhere. Competitors will happily hire me. I wish things would improve at WF, but it doesn't seem like it is going to happen anytime soon.
I may less than $75,000 so..