The New York Times reported on Wednesday that Citigroup (C) has decided to raise employees’ base salaries to avoid the  backlash that could hit the firm from the general public if they were to pay out big year-end bonuses. It was reported that some employees could earn as much as 50% under the new plan. Jim Cramer was outraged by the move because the bonuses are being paid to employees at a firm that is 34% owned by the government. Cramer said he doubted just the rank and file would be the only workers getting fatter paychecks. He also said he might feel different had Citigroup paid back its TARP loans, but Citigroup has not done that. Instead, he advocated a two-tier system, where short-term incentives are paid to those workers who are no risk to the company, and longer term, such as vesting stock for those who do. “The latter is especially important because it was long-term risk in exchange for short-term gain that sparked the banking crisis in the first place,” Cramer said. Cramer told viewers he understands the need to keep good people at Citigroup, but he cannot support pay packages that don’t make sense for a government owned firm. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!