Citigroup Boosts Pay for U.S. Junior Bankers After a Record Year
(Bloomberg) -- Citigroup Inc. increased pay for junior investment bankers in the U.S. after their division posted its best performance on record last year.
The New York-based company increased base salaries for first-year analysts to $110,000, while those in their second and third years will now receive $125,000, according to a person with knowledge of the matter. The changes also apply to analysts in the firm’s sales and trading divisions.
Citigroup said on Friday that investment-banking revenue soared 30% last year to $7.51 billion, the best annual performance ever, according to data compiled by Bloomberg Intelligence. Fees from advising corporations on deals jumped 78% to $1.8 billion, also a record.
The fee bonanza stems from a boom in deals that have left many junior bankers working long nights and into weekends preparing presentations so their managers can pitch deals. That’s prompted an industrywide reckoning about pay and working conditions for the youngest talent.
As a result, major U.S. banks last year began lifting junior-banker pay in a bid to stem defections of younger staff inundated by work. Just six months ago, Citigroup boosted base pay for first-year bankers to $100,000.
“At the entry levels in the organization, we’ve seen increases as well,” Chief Financial Officer Mark Mason told journalists on a conference call Friday. “Whether it’s our analysts or associate bankers, there’s a lot of competitive pressure out there on wages and pay.”
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