Verizon and Disney announce bonuses for employees

Two more big companies are passing savings from the tax bill along to employees.Verizon said in an internal me...

Posted: Jan 24, 2018 8:38 AM
Updated: Jan 24, 2018 8:38 AM

Two more big companies are passing savings from the tax bill along to employees.

Verizon said in an internal memo Tuesday that it's giving 50 shares of restricted stock, or a cash equivalent, to full-time employees who aren't executives. The amount will be calculated based on Verizon's stock value on February 1.

The company explained that the grant will vest over two years and appreciate with dividend payments.

On Tuesday, Verizon shares closed over $53. At that price, eligible workers who choose the cash equivalent would get more than $2,650 each.

Altogether, Verizon will give about 153,000 of its 155,500 employees the bonus.

"The Verizon Special Award confirms that we're all owners of the business and gives us a chance to create value for ourselves, our customers and our shareholders," the company said in its note to employees.

Verizon teased the news when it reported its fourth quarter earning results Tuesday. The company said it was able to award the bonuses because of the tax bill.

Related: Walmart is raising its minimum wage and handing out tax cut bonuses

"Our employees drive the innovation and success of our business so it's vital that we all share in the success of not only tax reform, but the overall performance of Verizon," CEO Lowell McAdam said on the earnings call.

The tax bill will also allow the company to increase donations to the philanthropic Verizon Foundation, which focuses on funding STEM educational initiatives, by $200 to $300 million over the next two years, McAdam said. He added that the funds will be used to help improving customers' lives with tech.

Verizon employees weren't the only ones who got good news Tuesday.

Disney announced that it will give 125,000 employees a $1,000 cash bonus, thanks to the new tax law. Plus, Disney plans to invest $50 million in a new program that will help cover tuition costs for hourly employees.

Related: Some of the companies giving out raises and bonuses because of tax reform

The Disney bonus will be given to full- and part-time, non-executive employees who have worked for the company since at least January 1 of this year.

"I am proud we are directing approximately $125 million to our cast members and employees across the country," said Disney CEO Bob Iger in a statement.

"These initiatives will have both an immediate and long-term positive impact," he added.

Several companies have handed out bonuses in response to the tax overhaul, which cut the corporate tax rate from 35% to 21%.

Last month, AT&T promised to give qualified employees a $1,000 bonus -- as did American Airlines ,Bank of America and Comcast. Fiat Chrysler promised some workers a one-time $2,000 bonus. And Walmart promised employees a $1,000 bonus, plus higher minimum wages and better benefits.

President Trump has cheered these bonuses and benefits to employees. But others warn against seeing the new law as primarily beneficial to workers.

"This is the greatest gift to corporate America in decades," said Ian Winer, head of equities at Wedbush Securities, of the tax law. "It's far better for investors than it is for employees."

Huntsville
Few Clouds
82° wxIcon
Hi: 81° Lo: 54°
Feels Like: 82°
Florence
Clear
83° wxIcon
Hi: 79° Lo: 57°
Feels Like: 83°
Fayetteville
Clear
77° wxIcon
Hi: 79° Lo: 52°
Feels Like: 78°
Decatur
Clear
81° wxIcon
Hi: 82° Lo: 54°
Feels Like: 81°
Scottsboro
Clear
81° wxIcon
Hi: 83° Lo: 56°
Feels Like: 81°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 17359

Reported Deaths: 618
CountyConfirmedDeaths
Mobile2191115
Jefferson1780102
Montgomery163238
Tuscaloosa73814
Marshall6879
Franklin5457
Lee54033
Shelby50319
Tallapoosa42364
Butler40217
Chambers35325
Walker3442
Elmore3398
Madison3274
Baldwin2839
Dallas2603
Morgan2511
Etowah24811
DeKalb2433
Lowndes23812
Coffee2291
Sumter2206
Autauga2164
Houston2094
Bullock2034
Pike1980
Colbert1782
Russell1670
Marengo1636
Lauderdale1612
Hale1598
Calhoun1543
Choctaw1518
Barbour1501
Wilcox1447
Clarke1422
Cullman1260
Randolph1257
Marion12111
St. Clair1181
Pickens1114
Dale1100
Talladega1093
Chilton1001
Limestone940
Greene944
Winston880
Covington771
Jackson772
Crenshaw763
Macon754
Henry742
Bibb721
Washington686
Blount611
Escambia573
Lawrence480
Geneva400
Conecuh391
Coosa381
Monroe372
Perry370
Cherokee373
Clay272
Lamar230
Fayette150
Cleburne141
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 22566

Reported Deaths: 364
CountyConfirmedDeaths
Davidson504062
Shelby4943111
Trousdale13924
Rutherford119623
Sumner88145
Hamilton79415
Bledsoe6071
Williamson55210
Putnam4795
Robertson4653
Tipton4423
Out of TN4184
Lake4140
Wilson4078
Knox3755
Bedford2834
Montgomery2693
Rhea2100
Hardeman1960
Madison1752
Loudon1430
McMinn14114
Macon1363
Cheatham1230
Bradley1221
Fayette1152
Cumberland1121
Dickson1090
Unassigned920
Blount913
Maury890
Sevier812
Washington750
Coffee730
Wayne640
Gibson631
Monroe622
Sullivan602
Hickman580
Lauderdale561
Franklin531
Greene502
Dyer500
Marion401
Anderson401
DeKalb370
Hamblen362
Smith341
White330
Hawkins332
Lawrence310
Grundy311
Haywood312
Marshall311
Obion301
Henry300
Jefferson280
Carroll271
Overton260
Meigs260
Weakley260
Lincoln250
Warren230
Cannon210
Perry210
Cocke200
Carter191
Campbell181
Morgan170
Jackson170
Crockett162
Roane160
Polk160
Johnson160
Henderson150
Hardin152
Sequatchie150
Humphreys131
Fentress120
McNairy120
Chester120
Giles120
Scott120
Stewart110
Claiborne90
Houston80
Grainger80
Clay70
Benton71
Decatur50
Unicoi40
Union40
Van Buren40
Lewis30
Pickett30
Moore30
Hancock10

 

 

Community Events