Citi bonus complaints: "We were told our bonus is keeping our job"
Yesterday was bonus day at Citi. Expectations were high. They do not appear to have been met.
Multiple sources at the bank say Citi paid below expectations, particularly in the middle and junior ranks. Those same sources also say that they were told to take solace in their ongoing employment.
"London bonuses at Citi were abysmal," says one insider at the bank. "People were indirectly told that keeping their job was a bonus itself. And many departments didn't receive a pot for salary hikes."
Another insider on Citi's equities said bonuses had been "dysfunctional" and "unfair", particularly at the junior end. One quant at the bank said he'd had the message that he was lucky to keep his job and that even people who'd performed well had been paid down.
Recruiters said people seem unhappy, although there are signs that senior high performers have been rewarded. Insiders also had the impression that senior people did well: "senior leaders had a great hike and bonus, as always," said one. "It's the lower levels that have been treated badly," said the equities professional. One headhunter said that in rates in particular, it seemed that bonuses were down 20%. Revenues in Citi's macro business fell 6% last year. One banking VP said his bonus was flat: "It's not great." Another banker said "mediocre" was the word.
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Citi declined to comment. The bonus disappointment appears to have been accompanied by a comparatively low number of sub-managing director (MD) promotions, as predicted by the Financial Times in November. One Citi insider said promotions in some teams were down 50%, despite the bank's recent bumper MD class. Citi issued a comment in late November saying that the FT's claims that it would promote fewer people were false and that promotions are, "a key part of our talent strategy."
Citi reported its annual results this week. Revenues in its markets division rose 6%; profits 15%. In banking, revenues rose 32% and the bank turned a $35m loss to a $1.5bn profit.
Citi's equities sales and trading business, led by Fater Belbachir, is the only area that increased revenues faster than other banks this year. Belbachir and his lieutenant Yohann Freoa are likely to have been well-rewarded as a result.
Citi still has around 10,000 job cuts to go. The bank has a controversial appraisal process under which employees in each team are put into one of four brackets and managers are told that only 15% can be exemplary and no more than 30% can be "exceeds expectations", with the result that at least 55% of every team are average or below - even in high performing teams.
When it announced its fourth quarter results this week, Citi reduced its return on equity target from 12% to 10-11% in 2026. However, the bank's stock jumped by around 6% by virtue of a simultaneously announced $20bn share buyback program.
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