Citigroup to slash bonuses by around thirty percent
Citigroup Inc. (C), the third major U.S. lender by assets, slash 2011 bonuses in its investment banking division by about 30 percent on average amid slumping revenue, according to a person saying on the subject. A number of trades within the securities and finance unit had bonuses concentrated by as much as seventy percent compared with the earlier year, said the person, who asked to stay unidentified because the decisions aren’t public. The unit, led by James “Jamie” Forese, includes bond and stock trading as well as debt and equity underwriting.
Chief Executive Officer Vikram Pandit, 55, is firing workers and shrinking costs in the unit as he grapples with declining revenue. The bank said this month that it will cut about 1,200 workers from the division to save $600 million this year and more reductions may pursue. The unit’s income dipped 21 percent ever since 2009, while reimbursement and other operating costs jumped 15 percent.
