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Schwab Provides Pandemic Pay Raise, Delays Office Return

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What You Need to Know

  • Schwab is giving most employees a 5% pay raise in recognition of their performance during the pandemic.
  • The firm is delaying a full office return for its staff until January 2022, at the earliest.
  • Net new assets for the first half of the year more than doubled from the year-ago period.

Charles Schwab is giving its employees a special 5% pay increase to reward their performance during the COVID-19 pandemic.

The raise is being given “in recognition of their unwavering service to clients and each other throughout the pandemic,” the firm said on Thursday.

Schwab also said that because of “current circumstances, the firm has delayed a full Return to Office until January 2022, at the earliest.” For now, employees can continue to work from home or return to the office on a voluntary basis, it said.

Once back in the office, Schwab employees will have additional workplace flexibility, based on a hybrid work schedule, it said. Employees will also have the ability to work with their managers to determine an approach that works for their individual situations, should they need more flexibility.

The special pay increase will be applied to the “vast majority” of Schwab’s employees, effective in late September. The raise, however, will not apply to the company’s executive council or colleagues participating in Schwab’s incentive compensation plans, it said.

“Our teams’ focus and dedication have resulted in outstanding results for our clients and growth for the company,” according to Walt Bettinger, Schwab CEO and president. “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.”

This year, a record number of investors have turned to Schwab for help in navigating the “unprecedented market conditions,” the firm said.

Despite the challenges, Schwab’s core net new assets reached a record $257 billion for the first six months of 2021, more than double the results it achieved during the same period of 2020, it said.

During the same period, clients opened 4.8 million new Schwab brokerage accounts, representing its second and third straight quarters exceeding 1 million new accounts, it noted.

(Pictured: Schwab CEO Walt Bettinger)