Aug 19 (Reuters) - Charles Schwab Corp on Thursday said it was giving “the vast majority” of its employees a 5% pay increase effective in late September, becoming the latest employer in the financial services industry to boost wages amid a tight labor market.
Schwab, which runs brokerage services, banking, commercial banking and wealth management advisory services, said it was giving most employees pay raises “in recognition of their unwavering service to clients and each other throughout the pandemic.”
“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,” Chief Executive Officer Walt Bettinger said in a statement.
The pay raises highlight the fierce competition for talent in the financial services industry as the economic recovery continues to gain steam after COVID-19 lockdowns.
Citi Group, Morgan Stanley, UBS Group AG , Deutsche Bank AG, Goldman Sachs and JPMorgan, among others, have recently increased compensation for some employees, such as junior analysts.
Schwab last month reported record core net new assets of $257 billion, more than double the amount from the year-earlier period, as well as 4.8 million new brokerage accounts.
The pay raises will not include the company’s executive council or employees participating in Schwab’s incentive compensation plans.
Schwab also said that due to pandemic concerns, it delayed a full return to the office until January 2022, at the earliest. (Reporting by John McCrank; Editing by Steve Orlofsky)