Citi boosting salaries to offset lower bonuses

Discussion in 'Politics' started by drjekyllus, Jun 24, 2009.


    NEW YORK (AP) -- Citigroup Inc. is increasing base salaries for many of its employees -- reportedly by as much as 50 percent for some workers -- as it restructures its compensation program amid new restrictions on bonus payments.

    The increased salaries will offset lower bonuses, according to a person familiar with the matter who requested anonymity because the plans have not been made public. The higher salaries are not the equivalent of annual raises, the person added.

    Citi faces restrictions on bonuses as part of a new government compensation oversight plan because the bank received bailout funds from the Treasury Department.

    By shifting the mix in compensation packages, it will allow Citi to pay most employees as much as they received in 2008 while adhering to bonus caps.

    "Citi continues to examine ways to ensure its employee compensation practices are competitive in this very challenging market environment," Citi said in a statement Wednesday. "Any salary adjustments are not intended to increase total annual compensation, rather to adjust the balance between fixed and variable compensation."

    A New York Times report published Wednesday said some employees salaries will rise by as much as 50 percent because of the change in compensation structure."

    So you mean, if you want to have good talent you have to pay them well? This never occured to Obama I suppose. Obama will have a new regulation soon to reverse this. He has to find some way to crush the industry.
  2. This seems like a great opportunity to appoint another czar of some kind!
  3. Yes Yes, and lets get Barney Frank D. Mass. involved as well.
  4. TGregg


    "Excuse me comrade, may I please see your paycheck? Pardon? Oh I must insist. Thank you. Comrade, I can see here that you are overpaid and clearly in need of some training in our reeducation camps. These kind gentlemen will be happy to show you the way there."