CITIGROUP’S wealth unit has greenlit special retention bonuses for dozens of personnel this year as the Wall Street giant looks to prevent more bankers from leaving, Bloomberg News reported on Monday (Nov 25).
Andy Sieg, who was hired last year by the lender, said the unit’s recent results are starting to take hold, the report said, citing an interview with the head of wealth.
Sieg reshuffled leaderships and reiterated financial targets earlier in the year in a bid to turn around the lacklustre performance in the wealth arm.
His “abrupt” personnel changes have rankled some Citi executives, the report said, prompting bankers to defect.
To counter that, Citi has doled out bonuses to staff particularly in the wealth unit and to some in the private bank business to reward them for staying into next year, the report said, citing people familiar with the matter.
Citi’s moves came after the exodus of about 20 people from its wealth at work unit, the report said, adding that its private bank business has also lost about 10 per cent of its most senior bankers in North America over the past year.
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The bank is also hiring more brokers to its entry-level wealth segment, Citigold, by offering sweetened pay deals while improving its online self-directed investment platform, the report said.
Citi did not immediately respond to a Reuters request for comment.
The wealth unit posted revenue of US$2 billion for the third quarter ended Sep 30, an increase of 9 per cent from a year ago.
This comes as the bank under CEO Jane Fraser carries out an extensive reorganisation in an effort to improve the bank’s performance, reduce costs and streamline operations.
Citi’s wealth business has failed to surpass its main banking rivals since the aftermath of the 2008 financial crisis, the Bloomberg report said.
Citigroup’s shares, which were up about 1 per cent in early trading, have risen nearly 36 per cent in 2024. REUTERS
