Don't know if anyone caught this but Charlie Gasparino was on CNBC today saying that his "sources" in Citigroup told him that some employees are going to essentially be told that they will get no bonus this year but can keep their jobs. He was pretty vague about who would be affected and he's been wrong in the past, but this would be scary news if true for analysts, since banks across the street are fairly uniform and I know that last year Citi paid as much as the top of the street. Could we see zero bonuses?
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Please do not post crap like this on these forums. These are for back office employees. The report also mentioned that these employees will be going from salaried to hourly. Do you really think this applies to analysts? I hope not.
I watched the video on CNBC.com. The part about "going hourly from salary" was a joke a different blogger added to his commentary on the piece. As far as the "no bonus" talk applying only to back office folks: you're hoping that's what it means. Didn't come accross that way. Plus, I've heard otherwise.... bwah haaaaa.
I don't know what you are referring to, but he was not talking about back office employees only. The anchor and him talked specifically about the risk of losing "top performers", which would not apply to back office people. And he didn't reference a report (I don't know what report you're talking about), he said he got this information by talking to middle managers within the firm. You can go to the CNBC website and watch it if you want.
Are there "middle managers" in corporate finance / sales & trading? Exactly, Citi is a huge corporation that does crap like credit cards, retail banking, etc. I'm pretty sure he is referring to those businesses.
Last I checked Citi wasn't on the verge of bankruptcy. It will pay it's analysts. It's all tied to the market anyway. Hell, I work in a MM bank and we are tied to what the BB pays. If one bank doesn't pay its analyst, it's commmitting suicide. No head of IBD would ever allow this to happen.
But sounds unlikely to me. Even in the worst years of the 2001-2003 recession, bonuses dropped very low but didn't reach $0 for Analysts (well, unless the person was fired or something).
We might see more of a spread this year between different banks depending on who's most troubled credit-wise, unlike last year where most paid basically the same bonus.
But I doubt they will drop to 0 for Analysts and they certainly wouldn't switch us over to an hourly pay system - they would end up paying way more per employee unless they paid us minimum wage.
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