CITI Can’t Give Bonuses… So They Give Raises Instead

Does this bother you?

Citigroup pumping up paychecks

NEW YORK (CNNMoney.com) — Bailed out financial giant Citigroup said Wednesday it is going to the raise base salaries of its employees, although it is not planning to increase their total compensation.

“Retaining and attracting the best talent is very important to the success of Citi and all its stakeholders,” said Citigroup, in a statement.

The company insisted that total compensation, however, will remain constant — indicating that year-end bonuses and other special payments will be cut when pay is raised.

“Any salary adjustments are not intended to increase total annual compensation, rather to adjust the balance between fixed and variable compensation,” Citigroup (C, Fortune 500) said.

Citigroup has received $45 billion in funds from the government’s Troubled Asset Relief Program, or TARP. The compensation restrictions that come along with the assistance mean that much of the bank’s top talent has been leaving.

This is the problem with the government being involved.  This is something that CITI has to do to stay competitive, but it gives everyone a chance to beyotch.