Bonus Watch '14: Citigroup
Everyone at the House of Corbat is being asked to make sacrifices for the team this year, though some more than others.
The year-end bonus pool for the bank’s trading business will be unchanged from 2013, according to a person briefed on the matter, even though revenue has been sliding. The investment-banking division will increase rewards by 2 percent to 3 percent, short of its jump in revenue, the person said. Some bankers may see increases of as much as 5 percent, said the person, who asked not to be identified because the information hasn’t been disclosed publicly. Some traders may yet see cuts as payouts vary among desks focusing on different products, said another person. Investment-banking revenue rose 11 percent during the first nine months of 2014, while trading revenue slumped 9 percent, compared with a year earlier. Robert Julavits, a bank spokesman, declined to comment. Chief Executive Officer Michael Corbat, 54, is under pressure to limit compensation costs as he heads into next year, when he must show investors the bank can meet efficiency goals. For employees, that means continued restraint: A year ago, payouts for Citigroup’s bankers were said to be little changed, while traders and salespeople got cuts of 2 percent.
Citigroup Said to Keep Trading Bonus Pool Flat Amid Revenue Drop [Bloomberg]
