The AP is reporting that Citibank will be raising salaries for certain employees by as much as 50% in order to offset the new bonus restrictions. The company faces the restrictions because it took bailout money.
Citi is changing its compensation in order to continue to pay its workers the same amount without breaking any rules:
“Citi continues to examine ways to ensure its employee compensation practices are competitive in this very challenging market environment,” Citi said in a statement Wednesday. “Any salary adjustments are not intended to increase total annual compensation, rather to adjust the balance between fixed and variable compensation.”