Citigroup CEO Jane Fraser will slash the variety of bankers getting year-end promotions because the Scottish-born government seems to be to clamp down on prices, in response to a report.
Simply 2,000 Citi staff can stay up for an early Christmas current of a pay elevate and a extra senior title, down from 8,000 in earlier years, the Monetary Occasions reported on Tuesday.
The pay hikes for promotions are anticipated to be restricted to fifteen%, the British monetary newspaper added, citing 4 sources conversant in the matter.
However a Citi spokesperson moved to disclaim the FT’s report afterward Tuesday.
“Promotions are a key part of our talent strategy and while our year-end process is still underway, the notion that we will see a significant decline in promotions across bank or other releveling is false,” the spokesperson mentioned.
Fraser introduced a method to revive earnings final 12 months by which she vowed to chop 20,000 jobs and simplify the agency’s enterprise processes.
Her tenure has additionally been mired in a string of sexual harassment scandals, sparking accusations that she has did not sort out the financial institution’s allegedly poisonous working surroundings.
Managing director Ardith Lindsey is suing Citi over allegations that the agency’s headquarters was a “notoriously hostile” surroundings for girls.
Fraser mentioned the financial institution has simplified its construction to extend accountability, elevated investments in its information reporting, enhanced stress testing and diminished high-risk processes with bolstered controls.
The corporate posted a smaller-than-expected drop in revenue for the third quarter as debt underwriting propped up funding banking outcomes.
Earlier this month, it emerged that Citigroup is being investigated by a slew US authorities businesses over its ties to the sanctioned shadowy Russian billionaire Suleiman Abusaidovich Kerimov.
The Division of Justice, the Federal Bureau of Investigation, and the Inner Income Service are probing the financial institution’s work with Delaware-based Heritage Belief, which holds property owned by Kerimov, Bloomberg reported on Nov. 14.
