Citigroup Has a Plan to Fatten Salaries

[Badgerman]

Source: NYTimes

By ERIC DASH
Published: June 23, 2009

The troubled banking giant, which to many symbolizes the troubles in the nation’s financial industry, intends to raise workers’ base salaries by as much as 50 percent this year to offset smaller annual bonuses, according to people with direct knowledge of the plan.

The shift means that most Citigroup employees will make as much money as they did in 2008, although some might earn more and others less. The company also plans to award millions of new stock options to employees in an effort to retain workers and neutralize a precipitous drop in the value of their stock holdings.

Like Citigroup, financial companies, like Bank of America and Morgan Stanley, are raising employees’ base salaries to try to shift attention away from bonuses and curb excessive risk-taking. So are banks like UBS and other European competitors.

Read more: http://www.nytimes.com/2009/06/24/business/24citigroup.html?hp

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And the unemployment rate is now what, and rising? Will Obama ever try and put inot action his PROMISED stimulus for the nation: repair of deteriorating highways and other public infrastructure, rebuilding the nations electrical grid, building new railroad beds and upgrading existing ones so that mass transit can be faster than a 19th century trolly, monies for education to offset the loss of credit sources for college students etc? All of those things would create millions of substantially stable jobs. Bit what have we gotten: A few trillion dollars increase in national debt by providing taxpayer money so that the very money-changers who created this world mess can raise their salaries, pay bonuses and leverage up their own stocks. Thank you Mr. Obama, you and 'Brownie' may now enter the 'Heckuva Job' Museum.

[hobbit709]

1. I've got a salary plan in mind for them

But I don't think they'll like it.

[Teaser]

2. thanks for this morning's FAILPOST

.

[Cresent City Kid]

3. At first I thought it said they were going to "flatten" salaries

This is more typical.

[Romulox]

4. MORE taxpayer money for bankster salaries. Were is the outrage? nt

[OKNancy]

5. kick

[villager]

6. Citi boosting salaries to offset lower bonuses

Source: AP


Citi boosting salaries to offset lower bonuses


NEW YORK – 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."

<snip>



Read more: http://news.yahoo.com/s/ap/20090624/ap_on_bi_ge/us_citigroup_compensation

[maxsolomon]

7. funny - we got 4 rounds of layoffs, no bonuses AND a salary cut

but i suppose architecture is a much more reckless & irresponsible business than banking.

[liberal N proud]

8. What kind of management is that?

No fucking wonder the banking business has taken this country into the proverbial shiter.

[OhioChick]

9. This shit makes me sick. n/t