Wednesday, June 24, 2009

Citi boosting salaries to offset lower bonuses

You asked for it. All of you folks that don't understand that bonuses are just another form of compensation and were apparently so upset about bonuses. Well now, "By shifting the mix in compensation packages, it will allow Citi to pay most employees as much as they received in 2008 while adhering to bonus caps.".....except now the company loses leverage because the bonus portion of the compensation is no longer tied to goals!

How is removing goals going to make Citi a better company?

What they needed, was to do the opposite. They should have decreased their salaries and paid them primarily with bonuses based on goals. It's called pay for performance. You don't perform; you don't get paid. But noooooo, the silly public demanded LOWER bonuses....well, you got it.

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