This is the fourth rise in the last four years. In 2017, the bank lifted the level to $15 from $13.50. In 2019, it moved to $17, and last year to $20.
The $21-per-hour rate equates to a weekly salary of $840, or $43,680 per year.
“Responsible growth requires that we provide a great place to work,” said Sheri Bronstein, chief human resources officer at Bank of America. “We make broad-ranging investments to attract and develop talented teammates.”
The news had little impact on the bank's stock, which on Wednesday closed slightly higher at $44.24 in the regular session.
Many other companies have lifted their minimum wage too over the past 18 months, as they fight to hire and retain quality workers during the pandemic and its aftermath.
As for Bank of America, Morningstar analyst Eric Compton has a fair value estimate of $35 and gives the bank a wide moat.
“After more than a decade of work, Bank of America now has one of the best retail branch networks and overall retail franchises in the U.S., is a Tier 1 investment bank, is a top four U.S. credit card issuer, is a top three U.S. acquirer, has a solid commercial banking franchise, and owns the Merrill Lynch franchise, which has turned into one of the leading U.S. brokerage and advisor firms,” he wrote in July.
“We believe that scale and scope advantages are increasingly important as the role of technology in banking grows,” Compton wrote.