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Econwatch
June 24, 2009 8:47 AM

Salaries Up, Bonuses Down In Citi's New Plan

By
Daniel Carty
Topics
Banking
(AP / CBS)
Citigroup is overhauling its compensation plan – increasing base salaries and reducing bonuses – as they try to balance retaining top performers and placating Washington politicians, according to a Financial Times report.

Under the plan, which has been in the works for several months, top bankers would get their annual salaries bumped by up to 50 percent.

The banking giant will also introduce a new stock option program, giving employees a share of common stock for every restricted share they hold – the ultimate goal being to give workers incentive to stay at the company longer.

Citigroup, like other banks bailed out by the U.S. government, faces pressure from Washington to limit executive compensation and must get approval from Kenneth Feinberg, President Obama's "pay czar," before implementing the new system.

The bank claims the new plan will not result in higher total compensation, just shift how much is fixed (salary) and how much is variable (bonuses).

According to the report, other banks like Morgan Stanley and Bank of America have introduced similar plans.

Add a Comment See all 13 Comments
by babooph July 8, 2009 6:25 AM EDT
Labor ,getting paid more than Asians,are fired & replaced overseas-management,bankrupting these now low labor cost companies are given big pay raises,WITH PUBLIC $$$$!!!So nice to have a lobbyist instead of a vote.
Reply to this comment
by Tactless2009 June 25, 2009 7:07 AM EDT
If more people would speak with their pockets in protest of issues they do not like, abuses like this would end. I personally do not have any account with Citi since I closed an account with Washington Mutual in a protest to TARP the minute Citi took them over. If I did have an account with them now, I would be closing that account too. I already boycott the major gas suppliers who were posting record profits while gas was $4+ a gallon last summer (and were typically $.10 higher than the lower competitors), Walmart (once it quit being "made in the USA" as they claimed when they first opened), and have paid off all my cards each month so as not to pay any of these fat cats a dime. I hope if they do get those HUGE raises that they are taxed so outrageously that this type of GREED is discouraged. Unbelievable!
Reply to this comment
by ramos1129 June 24, 2009 1:54 PM EDT
Citi can have any employee compensation plan it wants after it has paid back evey dime of taxpayer monies.
Reply to this comment
by credibility2 June 24, 2009 12:45 PM EDT
Where's the outcry over the egregious salaries and bonuses and endorsements paid to entertainers (recording so-called artists, Hollywood-types, etc.) or especially sports figures? None of these deserve to making the millions they pull down each year for doing very little work, with many of them not very intelligent, either.
Reply to this comment
by vrick_silvah June 24, 2009 11:55 AM EDT
Some of these companies such as citigroup should be audited by the government everyday. It's pretty obvious they messed up our economy while they're to executives that initially got there company into deep financial problems to begin with are collecting millions of dollars for bonuses and stocks. I think the government should try and get executives of these types of companies like citigroup arrested and tried in the supreme court. It's there Job to ensure that there company is running smoothly. That's what they're getting paid to do as C.E.O's and executives is to ensure that there company is in a good financial state. So if that doesn't happen, that means they got paid for free and didn't do there jobs. That should mean they should return all the money the company gave then because they didn't do what they were getting paid to do. Citigroup will never survive in american unless they change there ways and get there higher up to think from a customers point of view.
Reply to this comment
by whitemale08 June 24, 2009 11:19 AM EDT
I tried to warn you but you keep calling me a 'kooc'.

And Bloomberg is reporting today that Citibank will no longer accept mortgage applications due to 'quality credit score issues'.

This was supposed to be the prime reason for bailiing them out 45 billion.


The American SUCKER.....WHAT A SUCKERRRRR!!!!!!(licking and blowing sounds).
Reply to this comment
by hungry1968-15 June 24, 2009 11:08 AM EDT
by grabandgo June 24, 2009 7:32 AM PDT
Again barry obama and tax cheat timmy failed the American people.
These people should be taking cuts in pay to help pay back the loans.
THIS ADMINISTRATION IS AS BAD IF NOT WORSE THAN THE PREVIOUS ONE.






What can Obama do, (or is supposed to do), about the amount of money that Citigroup pays it's employees?
Reply to this comment
by grabandgo June 24, 2009 10:32 AM EDT
Again barry obama and tax cheat timmy failed the American people.
These people should be taking cuts in pay to help pay back the loans.
THIS ADMINISTRATION IS AS BAD IF NOT WORSE THAN THE PREVIOUS ONE.
Reply to this comment
by 2strays June 24, 2009 10:30 AM EDT
Hey America!!! Is anybody awake out there. It's one thing to think I'm stupid but even worse to think that I don't know that you think I am stupid. Well, surprise! Some Americans are fed up and disgusted with the double talk, greed and deliberate abuse of America' blessings. It's time for legal action because a crook is a crook is a crook. Our whole structure is imploding because of "educated" trash like these people.
Reply to this comment
by babooph June 24, 2009 10:26 AM EDT
50% pay raise -direct from the US taxpayers-bet we could have "outsourced " them all to India & China-their banks did not go under & I bet they work competently for pennies compared to our losers.
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