15 major companies that are investing their tax savings in employees, jobs, and communities

  • Billionaire investor Paul Tudor Jones cofounded the nonprofit JUST Capital in 2013 to measure what Americans want from corporations, and which of these companies are contributing to a "more just" society.
  • President Donald Trump's tax plan is set to save the 1,000 largest American companies $150 billion.
  • JUST has analyzed 120 of these companies, whose savings account for about one-third of that $150 billion, and found that only about 6% of the windfall is going toward wages that aren't one-time bonuses.
  • JUST has, however, highlighted 15 companies that are using the opportunity to invest in their employees and communities, including Boeing, FedExJPMorgan Chase, and Apple.
  • This post is part of Business Insider's ongoing series on Better Capitalism.

After Congress passed the Republican tax plan in December, President Donald Trump said it was "above all else a jobs bill" that would create new American jobs and raise wages across the country.

As part of the bill, the corporate tax rate was drastically reduced from 35% to 21%, for an estimated $1 trillion in corporate savings over the next decade.

And while the cut has created jobs and boosted wages at some American companies, investor Paul Tudor Jones' nonprofit JUST Capital found that only about 20% of the windfall is going toward job creation, and 6% is going toward workers. A full 57% is going to shareholders in the form of stock buybacks, dividends, or retained earnings.

JUST told Business Insider that while the overall picture can look disheartening, there are companies like Boeing and JPMorgan Chase that are using their tax savings to create long-term value rather than only boost their stock price.

Throughout the year, JUST has been tracking how companies in the Russell 1000 spend their tax savings. It measures that spending across seven categories. Using a 2017 survey of 4,100 Americans, JUST found that Americans rank, in order from highest to least importance, a company's behavior regarding: workers, customers, products, environment, communities, jobs, and management and shareholders.

JUST has created a ranking of the companies that have reported their spending, where each of the seven categories is weighted for its perceived importance (e.g. savings spent on workers is weighed more heavily than the same percentage of savings spent on communities).

JUST's research director Rob Du Boff explained to us: "The percentages are based on our estimate of potential tax savings (based largely on what they were paying in the prior three years) and our estimate of the incremental spending programs (for this reason, accelerated pension plan contributions don't count because that is just a payment toward a pre-existing liability). There is certainly some guesswork, but we already have a rich set of data from our prior wage and tax work to make educated guesses."

The ranking is ordered by quartile, and we've highlighted the 15 companies that are in the top half of the top quartile. Because of the many variables at play, these 15 companies are not rated 1-15, but "should be considered equals," according to Du Boff.

As of this writing, JUST has analyzed 121 of the Russell 1000 companies, but they also account for about one-third of the index's total value. You can find the full rankings, updated weekly, as well as the full methodology, at JUST's website. 

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Companies giving back to employees
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Companies giving back to employees

Boeing — Aircraft company based in Chicago, Illinois 

• $220.7 million in tax savings

• 67% to workers, 52% to jobs

Boeing CEO Dennis Muilenburg said in a press release that his company would be using the savings to invest in "training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets," as well as "'workplace of the future' facilities and infrastructure enhancements." 

Photo credit: Reuters

FedEx — Courier company based in Memphis, Tennessee 

• $385.7 million in tax savings

• 48% to workers, 52% to jobs

FedEx is putting all of its savings toward an investment in workers and jobs, including $200 in increased compensation and a contribution to the $1.5 billion seven-year plan for building out its Indianapolis hub. 

Photo credit: Reuters

JPMorgan Chase — Financial services company based in New York City, New York 

• $2.9 billion in savings

• 3% to workers, 88% to products, 3% to communities, 6% to jobs

JPMorgan Chase has an ambitious $20 billion five-year plan that was sparked by the tax cut. This includes increasing wages for 22,000 employees working at Chase branches and hiring 4,000 Americans. And of that $20 billion,$1.75 billion will be invested in philanthropic causes in communities like the South Bronx and Detroit. 

Photo credit: Reuters

Kraft Heinz — Food company based in Chicago, Illinois and Pittsburgh, Pennsylvania 

• $463.7 million in tax savings

• 27% to products, 73% to jobs

Kraft Heinz CFO David Knopf said in a statement that his company will be investing heavily in its workforce with its windfall, with "$300 million in strategic investments to build our capabilities, our people skills and our brands" and "more than $800 million in capital expenditures to improve quality, safety and capacity." 

Photo credit: Reuters

Apple — Technology company based in Cupertino, California 

• $5.6 billion in tax savings

• 100% to jobs

Apple, as the country's biggest taxpayer, has a $30 billion plan over the next five years that will create an estimated 20,000 American jobs

Photo credit: Reuters

Regions Financial — Financial services company based in Birmingham, Alabama 

• $174.7 million in tax savings

• 14% to workers, 23% to communities, 57% to jobs, 6% to shareholders

"The investments we are announcing today in our workforce, our communities and our company reflect our commitment to creating shared value and will support sustainable growth that ultimately benefits our customers and shareholders," Regions CEO Grayson Hall said in a statement. This includes raising its minimum wage to $15 an hour and increasing its infrastructure investment by $100 million. 

Photo credit: Getty

Huntington Ingalls Industries Inc — Shipbuilding company based in Newport News, Virginia 

• $71.9 million in tax savings

• 7% to workers, 83% to jobs, 10% to shareholders

Huntington Ingalls Industries CEO Mike Petters told the Sun Herald that it is giving all of its 11,500 workers, with few exceptions, a one-time $500 bonus, and is also spending around $100 million on workforce development at its apprenticeship schools. 

Photo credit: Getty

Bank of New York Mellon — Financial services company based in New York City, New York 

• $309.6 million in tax savings

• 1% to workers, 80% to customers, 19% to shareholders

BNY Mellon told the Wall Street Journal that it will be raising its minimum wage for operations workers to $15 an hour and will be investing the majority of its tax savings into technology upgrades that will enhance the customer experience

Photo credit: Getty

Darden Restaurants — Restaurant company based in Orlando, Florida 

• $25.3 million in tax savings

• 79% to workers, 21% to shareholders

Darden, the owner of restaurant chains like Olive Garden and Red Lobster, was the first restaurant company to announce it would be investing the majority of its savings in its workforce

Photo credit: Getty

Chipotle Mexican Grill — Restaurant company based in Denver, Colorado 

• $45 million in tax savings

• 13% to workers, 65% to customers, 22% to shareholders

Chipotle is giving its employees one-time bonuses, but will be putting most of its savings toward a $50 million plan to enhance its restaurants in the wake of a string of food contamination scandals. "This initiative is about refreshing things in our restaurants aesthetically to make them more inviting and efficient for guests," spokesperson Chris Arnold told CNN Money. 

Photo credit: Getty

AMERCO — Holding company based in Reno, Nevada 

• $60 million in tax savings

• 10% to workers, 67% to products, 24% to shareholders

AMERCO is the holding company for U-Haul, and U-Haul's chairman Joe Shoen said in a statement that full-time employees would be getting a $1,200 bonus, part-time employees would be getting a $500 bonus, and all employees would be getting a wage increase, as well. 

Photo credit: Reuters

Carter's — Apparel company based in Atlanta, Georgia 

• $40 million in tax savings

• 13% to workers, 50% to customers, 38% to shareholders

Carter's is investing in products across its children's clothing lines, and is contributing $20 million to one-time bonuses and retirement plans. 

Photo credit: Getty

Associated Banc-Corp — Bank holding company based in Green Bay, Wisconsin 

• $29.3 million in tax savings

• 44% to workers, 12% to communities, 44% to shareholders

Associated Bank is raising its minimum wage from $10 to $15 an hour and giving a one-time $500 bonus to most employees. It is also contributing $3.5 million in charitable investments in low- to moderate-income communities.

Photo credit: Facebook.com 

IDEXX Laboratories — Animal healthcare services company based in Westbrook, Maine 

• $35.4 million in tax savings

• 38% to workers, 14% to jobs, 50% to shareholders

IDEXX CEO Jonathan Ayers wrote in a statement that the company is taking advantage of its tax savings to raise its 401(k) match and invest in innovation that will create jobs. 

Photo credit: Getty

Humana — Health insurance company based in Louisville, Kentucky 

• $550 million in tax savings

• 25% to workers, 12% to customers, 13% to communities, 50% to shareholders

The Courier-Journal reported that Humana is raising its minimum wage to $15 an hour, and is implementing an incentive-based program that can raise an employee's wage by as much as 4%. 

Photo credit: Getty

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