Comp Watch '09: Citi And BoA Probably Base Raising Pay, JPMorgan And Goldman Calling Your Bluff

Author:
Publish date:

The Journalreports 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.

Related