New Pay Scale On Wall Street?

Today, the New York Times reports today that Citigroup is restructuring its pay scale (i.e. upping salaries and reducing bonuses) for its rank-and-file workers in an effort to retain them. While the story notes that Americans regard Citi as the poster child of all that was wrong with Wall Street (greed, risk-seeking behavior to win big bonuses), the story rightly notes that it might be a wise choice, since the U.S. will have a 34 percent stake in the company and might like to retain its best employees---paying them a fair wage instead of swing-for-the-fence inducing bonuses.

This post on Yahoo Finance crticizes the Times story, quoting Raymond James analyst Jeffrey Saut as saying mildly bullish things about Citi.