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From Kirsten Bischoff, Opalesque New York:
The anticipated 50% salary raise for a number of Citi employees has generated almost 600 news articles dissecting, debating and many denouncing the bank’s decision. Under the proposed plan, first reported by the NY Times, Citi will raise base salaries for investment bankers and traders whose compensation is typically skewed towards bonuses rather than yearly salary. Employees in risk management, consumer banking and credit card areas will see much smaller increases.
This increase in base pay likely marks a shift within the banking industry as firms such as Bank of America and Morgan Stanley plan to follow suit, but it is not one that is likely to be echoed within the hedge fund industry.
“Citi needs to [increase pay] to retain their talent and due to the uncertainty regarding the firm’s future,” Deborah Markus, Founding Partner at New York-based executive recruitment firm Columbus Advisors told Opalesque.
Meanwhile, the hedge fund industry appears to be cycling out of a period of loss and the general consensus is that firms that survived 2008 are well positioned to move forward.
“What is driving compensation in hedge funds right now is the historical performance of the fund, the size of the fund, marketability, and funds future plans.”
Trends for the currently employed
While there is less job hopping in general due to the decrease in opp...................... To view our full article Click here
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