Leaders.com
  • Login
  • Subscribe
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
  • Login
  • Subscribe
Company Culture

Junior investment bankers are seeing a pay boost at Citigroup

By Savannah Young Leaders Staff

Savannah Young

Savannah Young

News Writer

Savannah Young is a news writer for Leaders Media. Previously, she was a digital reporter for WATE Channel 6 (ABC)...

Full bio


Learn about our editorial policy

Jan 18, 2023

Citigroup Boosts Pay For One Type Of Banker

Despite the big slump in the banking industry, Citigroup is boosting pay for most junior bankers—increasing salaries by as much as 15%.

Key Details

  • Citigroup Inc. is bumping up pay for junior bankers by as much as 15%.
  • According to people close to the company, the banking firm is increasing base salaries by an average of 10% to 15% for associates and vice presidents.
  • The pay bump is a shock as the bank faced a tough year, along with other banking institutions, facing a 53% drop in investment-banking fees for 2022.

Why it’s news

Citigroup Inc. has raised salaries for junior bankers despite the downturn in the banking industry.

As of late, ​​banking revenue has hit one of the worst declines in history, dropping lower than the financial crisis of 2008, leading many banks to cut costs and employees. 

Goldman Sachs, one of Wall Street’s biggest banks, recently laid off around 3,200 employees, and many other banks are looking to do the same. 

Banks have also been forced to cut back on bonuses amid the downturn, cutting bonus pools to employees by 30% to 40%—leaving many employees disappointed, considering bonuses amount to a large portion of their annual pay.

Despite the turmoil within the banking sector, Citigroup is upping pay. In an effort to retain young talent that is the future of the firm, the bank has bumped up pay for junior bankers by as much as 15% and is increasing base salaries by an average of 10% to 15% for associates and vice presidents

Citigroup recently warned investors that the downturn in banking would send compensation expenses up this year and that the investment banking portion of the company took a hit from this year’s slump.

“While the pipeline looks more promising and client sentiment is improving, it would be hard to precisely predict when the tide will turn in 2023,” says Citigroup Chief Executive Officer Jane Fraser.

Home / News / Citigroup Boosts Pay For One Type Of Banker
Share
FacebookTweetEmailLinkedIn

Related Stories

Regulators Struggle To Understand A.I. 

by Tyler Hummel Leaders Staff
Public Policy

13 hours ago

EU

The rapid proliferation of artificial intelligence (AI) has meant that world governments are struggling to understand the implications of AI as a disruption tool and thus aren’t able to meet the needs of writing regulations for it. 

Key Details

  • The White House released a blueprint in October to address many of the core economic and legal concerns with new technologies, such as algorithmic racial bias, data harvesting, and automation. 
  • The European Union proposed its Artificial Intelligence Act in 2021, litigating uses for AI that it deems high-risk and low-risk, but it hasn’t passed. 
  • Both major proposals were written before ChatGPT was released on November 30, 2022, which sparked four months of rapid innovation and demand for AI applications. 
  • The Chinese government has similarly stated its intention to limit AI, announcing on February 24 that the Ministry of Science and Technology will be monitoring the safety and uses of the technology. 
  • Smaller agencies like the New York City Department of Education and various financial institutions have limited uses of chatbots in specific applications. Still, national-level solutions have been limited, Bloomberg notes.

Go deeper

FacebookTweetEmailLinkedIn

Meta Shelves the Metaverse … Quietly

by Tyler Hummel Leaders Staff
Tech

22 hours ago

Metaverse

After pouring billions into it, Facebook’s delve into virtual reality appears to be a secondary consideration after layoffs and poor sales. 

Key Details

  • Mark Zuckerberg and Facebook parent company Meta Platforms appear to be shying away from metaverse, maintaining that the service has a future but quietly shifting the core focus of the company toward artificial intelligence (AI).  
  • On Tuesday, the company announced another round of mass layoffs, with 10,000 more Meta employees losing their jobs. 
  • On March 3, Meta cut the prices of its flagship Meta Quest Pro products by 33%. 
  • A report from The Verge that same day found metaverse users in the Horizon World’s virtual space only retained 10% of users as regular users. 
  • The metaverse has consistently lost money for the company, including $13.7 billion in 2022, causing investor pushback in an October 2022 investor call.

Go deeper

FacebookTweetEmailLinkedIn

A Bailout Eclipsing That Of 2008 

by Tyler Hummel Leaders Staff
Markets

Mar 18, 2023

FR

The Federal Reserve has handed out hundreds of billions of dollars in the past week to avoid a banking crisis—one that President Joe Biden is eager to prevent from happening again. 

Key Details

  • According to the Federal Reserve’s Thursday report, the central bank lent $297 billion in emergency funds from Friday to Wednesday, in addition to $153 billion in lending against their collateral using “discount windows.” 
  • The spike in loans marked the highest number of requests the Fed has received in decades, eclipsing the 2008 financial crisis’s $111 billion discount window and the COVID pandemic’s $51 billion, Axios reports.    
  • In response to the ongoing turmoil, President Biden called for Congress on Friday to tighten banking regulations and impose penalties on banks “whose mismanagement contributed to their institutions failing.”

Go deeper

FacebookTweetEmailLinkedIn
Apple is limiting hiring and pausing bonuses for workers company-wide in an effort to reduce costs.
Business

Mar 18, 2023

Apple Cuts Back In Its Own Way

by Savannah Young Leaders Staff
Twitter is shifting its ad strategy—bringing in more lesser-known brands seeking clicks rather than more prominent brands seeking exposure
Business

Mar 17, 2023

Twitter’s Shift In Ad Strategy

by Savannah Young Leaders Staff
Social Issues

Mar 17, 2023

Political Pressures On College Campus 

by Tyler Hummel Leaders Staff

Recent Articles

Productivity

Mar 17, 2023

Unlocking Your Inner Drive: How to Motivate Yourself

Make real progress by trying out these techniques for boosting your self-motivation.

Wealth

Mar 15, 2023

Secure Your Family’s Future With Generational Wealth

Find out how to set your family up for a bright future with generational wealth.

Business

Mar 13, 2023

Which of the 16 Work Personality Types Are You?

Work personality types refer to how individuals approach and engage with work tasks, coworkers, and their environments.

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com