Citigroup Inc plans to raise salaries companywide to offset declines in bonuses, people familiar with the plans said, in an effort to retain employees after the troubled bank accepted $45 billion of federal bailout money.
The changes are not expected to affect overall compensation expense, though some employees may be paid more and others less, and New York-based Citigroup expects to issue new stock options to help retain employees, according to the people. Investment banking employees will be the first to see the changes, which will eventually be rolled out throughout the rest of the bank, which employs roughly 300,000 people. Citigroup declined to comment directly on the changes. In a statement, it said: "Retaining and attracting the best talent is very important to the success of Citi and all its stakeholders.'
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