Bank pay going up

[Tempest]

http://www.cbsnews.com/blogs/2009/06/24/business/econwatch/entry5108954.shtml
Quote:
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.

Trying to prevent brain drain, probably to foreign companies.

 

[Gary Allan]

Quote:
the ultimate goal being to give workers incentive to stay at the company longer.


Why? No one needs them to stay anywhere. There's plenty to fill any shoe ..no matter how big they think theirs are.

Obviously the incumbents were such masters of commerce ....

Let THEM sink into the great abyss of despair for all eternity for all the good they've done me.

 

[Turk]

They're trying to avoid the "Pay Czar"...

 

[ViragoBry]

Yeah, I really think they're missing the big picture if they think it's imperative that they keep the same people around that helped get them into so much trouble to begin with. Cut their pay and bonuses to a reasonable level, and if they don't like it, the're more than welcome to go to work for an Indian or Chinese company if they think they can handle the culture over there. (My guess is that they couldn't).

The good ol' boys club hard at work again...on our dime.

 

[Tempest]

Or maybe the people that are still there had nothing to do with the earlier financial problems? Or perhaps work in a different division?

 

[Gary Allan]

Originally Posted By: Tempest
Or maybe the people that are still there had nothing to do with the earlier financial problems? Or perhaps work in a different division?


So? If they think the world owes them more ..the door is probably only a few meters away. Go forth and find your fortune, young person (or grey haired League of Distinguished Gentlemen member).

As you often point out, life is "unfair".

 

[JHZR2]

Originally Posted By: Tempest
Or maybe the people that are still there had nothing to do with the earlier financial problems? Or perhaps work in a different division?


Then what is the issue? Business as usual, I'd say. They did just fine with less salary. Something tells me that they would do fine without the bonus as well.

If they lived beyond their means, that is tough luck, just like any other schmuck laborer.

 

[Kestas]

Brain drain? How much brains does it take to shuffle money around and skim some off the top? Now, if they actually did something productive and produced something useful and tangible, I'd warm up to the plan.

What's a top performer? How do they define "top performer"? I hope it's not someone who gives out the most mortgages. We know where that got us!

 

[IndyIan]

Yikes! Stories like this make me want to boycott people in office towers altogether... Especially towers with some financial instituion's name on it...
I don't think I'm turning into some kind of communist but I find more and more reasons to not like capitalism everyday...
I guess if I had tons of capital I might feel different but its seems all the folks with capital are also very good at seperating the average joe from his...

 

[Gary Allan]

The curse of the financiers ..the money changers. They do nothing productive ..they broker everything produced.

 

[Kestas]

Indylan, I too hate communism with a passion. But it's shameful when capitalism rears its ugly head as it does nowadays.

 

[oilyriser]

If I take a 33% pay cut for one year to allow my employer to stay in business, and they reinstate my old salary, that would be how much of an increase?

 

[IndyIan]

Ummmmm, 50%? I just think its funny that now they will have their previous total compensation but now with less "performance" bonuses... Now they get all the money all time regardless of how much profit or loss they are responsible for. Sound like the pay structure in a government job...

 

[Tempest]

Originally Posted By: IndyIan
Ummmmm, 50%? I just think its funny that now they will have their previous total compensation but now with less "performance" bonuses... Now they get all the money all time regardless of how much profit or loss they are responsible for. Sound like the pay structure in a government job...

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