Citigroup has cut investment bankers’ bonuses by 10% to 20% globally after a revenue slump, according to people with knowledge of the matter.
Bloomberg reports that average bonuses in Asian and European divisions dropped about 20% and the U.S., its largest market, saw reductions of about 10%, one person said, declining to be named because the details aren’t public. Staff members of the New York-based firm were informed Thursday, two people said.
New Citigroup CEO Michael Corbat is among global banking leaders who are cutting bonuses as slow economic growth squeezes revenue and European lawmakers put curbs on compensation. Profit at the lender’s securities and banking unit slumped 10% in 2012.
'We need to show expense discipline and that we can be smarter allocators of our resources', Corbat told analysts last week. 'Improving our operating efficiency, returns on assets, and tangible equity in a risk-balanced manner and returning capital to our shareholders are critical goals'.
In the meantime, the news organisation also reports that Goldman Sachs boosted CEO Lloyd Blankfein’s stock bonus 90% to $13.3m, topping JPMorgan’s Jamie Dimon for the first time in five years, as profit climbed.
While the bank didn’t disclose Blankfein’s cash bonus, a person familiar with the payout said his total bonus was about 70% restricted stock and 30% cash, like last year. On that basis, the total would be about $19m including $5.7m in cash.