Citigroup announced yesterday its intentions to boost the base salaries of its employees at the expense of bonuses and other special payouts, according to CNNMoney. The mass salary increases come in spite of federal bailout funding and a general public frustrated with excessive compensation on Wall Street.
The planned pay increase, however, will not specifically benefit managers and other high-level employees, but is meant as a widespread retaining tool. “Retaining and attracting the best talent is very important to the success of Citi and all its stakeholders,” said the bank.
Figures are as-yet unreported, but people close to the matter said base salaries could rise by as much as 50 percent. Officials from Citi say that the increase base salaries will not result in higher overall payments, as bonuses and other perks would be cut to compensate.