WASHINGTON — Citigroup is increasing the base salaries of many employees — reportedly by as much as 50 percent — as it restructures their compensation amid government restrictions on bonuses.
The Obama administration reacted by pledging to aggressively implement a new law governing compensation at companies such as Citigroup that have received billions of dollars in bailout support.
Administration officials wouldn’t say if Citigroup had informed the government in advance of its decision.
The higher salaries at Citigroup are not the equivalent of annual raises because bonuses are being lowered, said a person familiar with the matter who requested anonymity because the plans have not been made public.
The person said the changes would not affect the amount of compensation. By shifting the mix, the change could allow Citi to pay most employees as much as they received in 2008 while adhering to bonus caps. The person said the employees included traders, who tend to be compensated more heavily with bonuses, and middle- and lower-level managers whose compensation is more weighted toward salaries.
