Some big banks that have received government bailouts in the US and UK are offering handsome pay packages to lure stars and reverse last year's steep losses.

Bank of America recently hired a top bond salesman with a guaranteed two-year deal valued at about $6m (€4.3m) for the first year, people familiar with the matter say. Citigroup offered nearly $2m in an attempt to recruit a top brokerage executive. And Royal Bank of Scotland Group, Britain's largest recipient of government bailout funds, is offering pay packages to lure or retain some people that are at or above the industry's peak pay in 2007, people familiar with the deals say.