Citigroup Inc., the U.S. bank that got $45 billion of government funds, will raise base salaries by as much as 50 percent to help compensate for a reduction in annual bonuses, a person familiar with the plan said.Anyone Surprised?
The biggest increases will go to investment bankers and traders, said the person, who declined to be identified. Workers in consumer banking, credit cards, legal and risk management will see smaller salary adjustments. The New York-based company also plans to award stock options to try to keep employees after Citigroup’s market value plummeted 84 percent in the past year.
Citigroup joins Morgan Stanley and UBS AG in boosting salaries for executives and employees. Morgan Stanley said last month it will increase base pay for many of the New York-based firm’s top executives and double the pay of Chief Financial Officer Colm Kelleher.
Thursday, June 25, 2009
Where is the Money Going?
Has anybody really thought about the $45 billion of government funds that went to Citigroup Inc.? How did the U.S. bank use this enormous amount of money? Citigroup Inc. just announced that base salaries of many employees who are in top positions at the bank will increase.