Citizens Financial Group, 12th largest retail bank in the U.S., announced that it would give $1,000 bonuses to most of its employees in the wake of tax reform passing Congress, following in the footsteps of other major companies who celebrated tax reform by handing out bonuses.
"Corporate tax reform provides us with an opportunity to recognize the role our colleagues have played in delivering better results for customers and shareholders, and to positively impact the communities where we live, work and play,” said CEO Bruce Van Saun, in a statement.
The one-time bonuses will go to workers at the Providence, Rhode Island-based company "below a certain compensation threshold," amounting to 70 percent of its workforce. The bonus awards will add up to $12.5 million.
Van Saun was a major advocate of the tax reform, which lowered the top corporate rate in the U.S. to 21 percent, down from 35 percent.
"The watershed here is are we going to get a lower tax rate that makes us more competitive globally. If there is an agreement on a corporate tax rate reduction, that will be very good for sentiment and unleash some of the animal spirits. People will say, "OK. I’m going to invest because I think this bodes well for the economy," he told American Banker last year.
Citizens Financial Group has about 1,200 branches in 11 states in the New England, Mid-Atlantic, and Midwest regions.