Citi plans to raise salaries to, you guessed it, offset smaller bonuses. Employees may be getting up to a 50% raise. Uncle Vik must be smiling or stressing this morning. I'm not sure which anymore.
The money quote in the article, "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. "
Three things.
1) No matter how you spin it this is going to look bad. A bank that can't afford to pay back the TARP money yet while many of its competitors are should not be raising salaries.
2) Who wants Citi stock right now? My guess is people inside the company are shaking their heads saying please don't give us any more stock options at this time.
3) Finally, this little piece of the quote (although some might earn more and others less) has to be worrying those that fall into the latter category.
1 comment:
Shades of AIG.
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