Von Aldo

New Pay Scale On Wall Street?

Today, the New York Times reports today that Citigroup is restructuring its pay scale (i.e. upping salaries and reducing bonuses) for its rank-and-file workers in an effort to retain them. While the story notes that Americans regard Citi as the poster child of all that was wrong with Wall Street (greed, risk-seeking behavior to win big bonuses), the story rightly notes that it might be a wise choice, since the U.S. will have a 34 percent stake in the company and might like to retain its best employees---paying them a fair wage instead of swing-for-the-fence inducing bonuses.

This post on Yahoo Finance crticizes the Times story, quoting Raymond James analyst Jeffrey Saut as saying mildly bullish things about Citi.

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