The Journal reports that in order to get around that pesky matter of not be allowed to give bonuses employees have become accustomed to in year’s past, Citi and Bank of America are “expected” to raise base salaries for investment bankers “soon.” This shouldn’t come as much of a shock to Ken Lewis’s underlings, as it’s been expected for some time (and may have actually already begun).* Of course, the banks could’ve been simply leaking maybe we’ll do this, maybe we’ll do that, maybe we’ll offer deeply discounted pony rides stories to the press in order to jerk the chains of their employees, so it’s nice to get a little confirmation from Bank of Amerillwide spokeslady Jessica Oppenheim (who said that “pressures in the investment-banking and capital-markets businesses continue to be intense” and that BAC would “take the steps necessary to retain key employees”) and to see Vikula possibly getting on board.
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.
*Nor should it be cause for celebration, since it most likely won’t translate to increased comp overall. Although perhaps it’s comforting to know total compensation won’t be coming out to a ten spot and an autographed headshot of Lewis or Pandit, which many legitimately thought would happen. In which case, party on.
Comp Watch ’09: Citi And BoA Probably Base Raising Pay, JPMorgan And Goldman Calling Your Bluff
By Bess LevinComments (24)
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Thank and good night.
I would stay at citi and work for a dollar a year if that pony offer were real.
Get at yo boy
I’ll believe it when I see it.
Does anyone really believe that at the end of the day this will result in an increase in total comp (sal + bonus)? Doubtful. Sounds like a ploy to make thing more average for most people.
What will the new analyst and associate base levels be?
@5- Thanks for pointing out what was already pointed out in the post, and which everyone knows. At the end of the day.
7 Not to be thick, but where is that pointed out in the post?
@8- in the paragraph about jpm and gs not needing to raise base pay, which would be done to compensate for a lack of bonus (or a much smaller bonus), since they’ll be distributing them anyway. It’s also sort of been acknowledged across the board (here and by other news sources and if you discuss the matter in conversation).
I would like to point out that this always happens in Dallas, and we are a proud people.
How does this affect the interns coming in from Western Michigan University?
JPM and GS don’t need to raise base because they will be paying back TARP as soon as possible. No bonus problems for them. MS and the rest of the trash will need to do something…..
party on Wayne
@12- yes, hence “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”
Because they know all they sold ya was a guaranteed piece of shit. That’s all it is, isn’t it? Hey, if you want me to take a dump in a box and mark it guaranteed, I will. I got spare time.
At the end of the day, its obviously going to lower pay streetwide. At the end of the day, you are dreaming if you think JPM and GS are going to pay anyone but their top producers, the rest are going to get screwed. At the end of the day.
If it were up to me, I would slash salary to $2k a month and offer 40% of generated revenue that can be directly assignable to an individual’s production. Can’t generate revenue? Get the fuck out.
To retain valuable analysts and key support personnel, who may be in a non-revenue generating position, pay them decently and incentivize loyalty by opening a bar on the trading floor and institutiing Stripper Fridays. Would really have to think twice about defecting to a competetitor unless they also had stripper Fridays.
17 By revenue, I assume you mean profits. Suppose you generate losses? You gonna pay back 40% of that? Probably not. I’m sure you expect the pain from that to be shared by all concerned. Support staff, shareholders. Everyone. So much for your grand Randian scheme.
Like it matters if Goldman pays comp or not… NY and NYC and the Feds are going to tax you to death anyway.
10 won this shit so hard
Hilarious
@18. 17 here. No I mean revenue. Losses would never be tolerated. Banks should be run like drug cartels; fuck up the product, the distribution or generate a loss and your wife, girlfriend, kids, dog, any living relatives, neighbors etc… get summarily executed. Keeps you focused.
Far from Randian since, despite the objectivism, there is no respect for individual rights here; neither the strippers, the peons or the loosers. Think of this political system as a corporatist form of fascism focused on captalist objectives. In other words, rights go to those who win and contribute to the betterment of the organization and society. Any draw-downing, freeloader who thinks they can show up on the desk, get paid for showing up, run a tab at the bar, and partake in Stripper Fridays, whilst retaining any personal rights to freedom or property, is sorely mistaken and should probably seek employement in the Obama administration.
All the Morgan Stanley VP’s were told this week that their base salary’s going up about 50% retroactive to May 1 starting with Friday’s paycheck. Don’t know how big the bump was for other levels, but everyone is getting a raise.
@22- yes, we read that here and in the WSJ last week.
@22 both of them?