Investment banks raise starting salaries!!!
Take a look at this article, seems so weird, especially during crisis!
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This isn't that strange. Banks have proven that you can no longer count on a fat year end bonus. To attract talent a greater percentage of comp will be shifted to salary.
Politicians know people hate headlines "Bankers receive xxm bonus!" so they put in ridiculous 'bonus caps' which means banks have to raise fixed salaries and cut bonuses in order to keep compensation the same, which increases their fixed costs and makes them less flexible so they are more prone to over-hiring and over-firing.
Politicians should stick to defence, policing, emergency services and healthcare. Media should stick to unbiased news reporting.
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