“We also expect merit increases of approximately $700 million, which are primarily awarded to employees with lower salaries.”

In context

“tation. We expect approximately $2.7 billion of gross expense reductions in 2024 due to the efficiency initiatives. We highlight in the slide some of the areas where we anticipate additional savings and continue to believe we have more opportunities beyond 2024. Similar to prior years, the resources needed to address our risk and control work are separate from our efficiency initiatives and we will continue to make significant investments in our risk and control infrastructure. While we remain focused on executing on our efficiency initiatives, we’re also continuing to invest and we expect approximately $1.1 billion of incremental technology and equipment expense, reflecting higher costs related to the amortization of investment in prior years, as well as new investments planned for 2024. We also expect merit increases of approximately $700 million, which are primarily awarded to employees with lower salaries. We highlight some of the other areas where we plan to invest on the next slide. Our 2024 expense outlook includes ongoing business related operating losses of approximately $1.3 billion, similar to the level we had in 2023. As previously disclosed, we have outstanding litigation, regulatory and customer remediation matters that could impact operating losses. So putting this all together, we expect 2024 non-insurance expense to be approximately $52.6 billion. It’s important to note that while we’ve made substantial progress executing on our efficiency initiatives, as Charlie highlighted, we still have a significant opportunity to get more efficient across the company. Given how critical it is to continue to invest in our business. On Slide 20, we provide some examples of our areas of focus”