Citigroup slashes banker promotions in cost-cutting drive: report
Citigroup CEO Jane Fraser will slash the number of bankers getting year-end promotions as the Scottish-born executive looks to clamp down on costs, according to a report.
Just 2,000 Citi employees can look forward to an early Christmas present of a pay raise and a more senior title, down from 8,000 in previous years, the Financial Times reported on Tuesday.
The pay hikes for promotions are expected to be limited to 15%, the British financial newspaper added, citing four sources familiar with the matter.
But a Citi spokesperson moved to deny the FT’s report later on 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 said.
Fraser announced a strategy to revive profits last year in which she vowed to cut 20,000 jobs and simplify the firms business processes.
Her tenure has also been mired in a string of sexual harassment scandals, sparking accusations that she has failed to tackle the banks allegedly toxic working environment.
Managing director Ardith Lindsey is suing Citi over allegations that the firms headquarters was a notoriously hostile environment for women.
Fraser said the bank has simplified its structure to increase accountability, increased investments in its data reporting, enhanced stress testing and reduced high-risk processes with bolstered controls.
The company posted a smaller-than-expected drop in profit for the third quarter as debt underwriting propped up investment banking results.
Earlier this month, it emerged that Citigroup is being investigated by a slew US government agencies over its ties to the sanctioned shadowy Russian billionaire Suleiman Abusaidovich Kerimov.
The Department of Justice, the Federal Bureau of Investigation, and the Internal Revenue Service are probing the banks work with Delaware-based Heritage Trust, which holds assets owned by Kerimov, Bloomberg reported on Nov. 14.
