Citigroup awards special retention bonuses for dozens, Bloomberg News reports

12:10 pm Monday, November 25th, 2024

(Reuters) -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.

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 lackluster 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% of its most senior bankers in North America over the past year.

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 $2.0 billion for the third quarter ended Sept. 30, an increase of 9% from a year ago.

This comes as the bank under CEO Jane Fraser carries out an extensive reorganization 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% in early trading, have risen nearly 36% in 2024.

(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Arun Koyyur and Maju Samuel)