Fat cats live! According to Bloomberg News, "JPMorgan Chase & Co.’s investment bankers will begin getting more of their pay in salary next year and less in bonuses as the bank shifts the weighting to remain competitive with rivals, a person familiar with the firm said." The plan, which will go into effect next year, will affect employees "who earn half or more of their total compensation in year-end bonuses." However, total compensation won't change, because bonuses will go down. Bloomberg further explains, "JPMorgan... is seeking to keep pace with rivals that boosted salaries amid restrictions on bonuses, and make its compensation costs more predictable... Citigroup will raise base pay as much as 50 percent. Morgan Stanley said in May it will increase base pay for some executives, while UBS increased banker salaries by half." A pay consultant added, "Most of the major financial firms have suppressed base salaries for the last 10 years, so they were unduly low compared to where they were 15 years ago." Well, unduly low without bonuses.
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