Citi, BofA may raise base pay for investment bankers: report

Wed May 27, 2009 7:22am EDT

A Citibank branch is seen in New York in this February 23, 2009 file photo. REUTERS/Shannon Stapleton

A Citibank branch is seen in New York in this February 23, 2009 file photo.

Credit: Reuters/Shannon Stapleton

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(Reuters) - 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 Group and JPMorgan Chase & Co 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."

Goldman and JPMorgan declined to comment, the paper said.

BofA, Citigroup, JPMorgan and Goldman could not be immediately reached for comment by Reuters.

Morgan Stanley said last week it raised the base salaries of senior officers to $800,000, but does not plan to raise total compensation.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Greg Mahlich)

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