NEW YORK (AP) - Citigroup Inc. is increasing the base salaries of many employees - reportedly by as much as 50 percent for some workers - as it restructures their compensation amid government restrictions on bonuses.
The higher salaries are not the equivalent of annual raises because bonuses are being lowered, according to a person familiar with the matter who requested anonymity because the plans have not been made public.
Employee compensation at financial companies, particularly in the form of bonuses, has brought criticism from members of Congress and the public after the government gave the banks hundreds of billions in bailout dollars.
Citi and the other companies who still hold bailout funds face limits on bonuses as part of a new government compensation oversight plan.