The overall annual pay better be coming down dramatically. For too long this industry has overpaid to retain “talent” that has crashed the global economy. The banks still don’t seem to appreciate how overvalued they are in the market. Pay superstar money for superstars, perhaps, but since when have we seen superstars? The high numbers generated during the bubble have been exposed as trash so anything from recent memory doesn’t fit. What is it going to take for them to understand? Then again, when they are treated so royally by the government, it’s only normal that they believe in their own superiority.
Following a Morgan Stanley plan unveiled last week, Citigroup and Bank of America are likely to soon raise base salaries for investment bankers to compensate for limits on annual bonuses, the Wall Street Journal said, citing people familiar with the matter.
Goldman Sachs and JPMorgan Chase are not considering an increase in base pay, the paper added, citing two people familiar with the matter.
BofA spokeswoman Jessica Oppenheim was quoted as telling the paper that “pressures in the investment-banking and capital-markets businesses continue to be intense,” adding that the bank would “take the steps necessary to retain key employees.”
Right. So how about we see some actual results from those “key employees” before getting carried away. If they want to leave, let them leave. There are plenty of others ready to dive in and move up the ranks. They may even be better. It’s hard to imagine anyone worse than what we’ve seen.