Citi, BoA raising base?
IB
Tags:
(Baboon, 110
Points)
on 5/27/09 at 11:39am
http://blogs.wsj.com/marketbeat/2009/05/27/citi-ba...
How do you think this will affect comp at boutiques and other banks? New base pay space race?






RE: raising bases at Boutiques.
I hope not. The flip side is ovbviously smaller bonuses. I rather not, as the piece quotes: get upped from 250k to 400k in salary if it means my B drops from 1mln to 250K.
This is just another salvo in the effort to nationalize banking.
As a good friend would say: Good grief!
Another "effort to
Another "effort to nationalize banking" - well, I'd actually rather have a higher part of my salary be fixed than variable in a down market for obvious reasons. I mean, as analysts, the variation is much less significant - instead of 50% of your comp being from bonuses, an MD makes up to 80% of comp from bonuses.
Keep in mind the clawback provisions, risk-lowering pay techniques, etc. that have been discussed by banking officials would NOT effect the vast majority of bankers, researchers, etc.
Not for analysts- this is
Not for analysts- this is for the high earners. Don't expect to see a change at the analyst level - yet.
..
"In related news, JPMorgan and Goldman are not worried about their employees leaving to go work at the two greatest banks in all the land (league table trainwreck edition), despite what must be highly amusing threats to the contrary, and are therefore, supposedly, not considering an increase in base pay. Which could also possibly be explained by the fact that a raise in base pay at JPM/GS is unnecessary 'cause it'll be business as usual when bonus times comes around again, and the government can suck it. Thank you and good night." ---Dealbreaker