Citigroup has told senior staff in Europe that they would receive fixed monthly pay in addition to their salaries in an attempt to compensate for rules that limit bonuses to up to twice the level of base salaries, the Financial Times reported, citing several people.
Reuters reports that more than 600 of Citigroup bankers in Europe were affected by the bonus cap and will therefore be paid such allowances, several people told the newspaper.
They said the U.S. bank had sent out letters to senior staff in recent weeks.
The FT said about half of the bankers had received similar allowances in the past after Citi introduced them a few years ago to mitigate the impact of regulatory demands for higher bonus deferrals for key staff.
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