According to Bloomberg News, Citigroup Inc., which got $45 billion dollars in bailout money from the federal government, will be raising the base salaries of their investment bankers and traders as much as 50 percent. Citigroup’s market value dropped 84 percent in the past year.
Citigroup spokesman Stephen Cohen told the Times, “Citi continues to examine ways to ensure its employee compensation practices are competitive in this very challenging market environment.” According to the Times, 84 percent of executives whose salaries have been “drastically cut back” in the face of, well, how taxpayers have covered their losing bets and everyone else is out of work, have stuck with their jobs.
Citigroup no longer needs approval of their pay packages from Kenneth R. Feinberg, the special master for executive compensation, since they’ve repaid their bailout money (which, apparently, they weren’t too desperately in need of).
Mr. Feinberg’s restrictions on executive compensation were expected by the usual suspects to be dealbreakers for the usual suspects.
Not really. Condolences to anyone who really expected them to be.