Citigroup announced plans Wednesday to restructure their compensation by increasing base pay for employees whose salary would be affected by government bonus restrictions. The final plans are yet to be revealed, but sources note it would not affect overall compensation, but would shift the mix in compensation from bonus to salary to adhere to the mandate for bonus caps.
So what does this mean for Citigroup employees? Some could see their salary rise as much as 50% — purportedly to help keep top-tier talent at the struggling investment bank. We see one Citigroup Senior Fund Accountant report on Glassdoor.com that they are ‘underpaid’ and suggests that the company should “Hire more qualified managers and give pay based on performance.” Given that the company received $45 billion from the government, switching bonus dollars to base salary hardly seems like a good use of taxpayer money.
Citigroup salary reports on Glassdoor vary widely, with Executive Vice Presidents reporting a total compensation package of more than $500K. Anonymous reports for Managing Directors with the company note an average base salary of $210K with bonuses of up to $1 million.