Citigroup CEO Jane Fraser plans to cut the number of bankers receiving year-end promotions as the Scottish-born executive looks to cut costs, according to reports.
The Financial Times reported on Tuesday that just 2,000 Citi employees could expect an early Christmas gift of a pay rise or senior title, down from 8,000 a year earlier.
The British business newspaper, citing four people familiar with the matter, added that the salary increases due to promotions are expected to be limited to 15%.
However, a Citi spokesperson later on Tuesday denied the FT report.
“While promotions are an important part of our people strategy and the year-end process is still ongoing, the idea that we will see a significant reduction in promotions across the bank or other level adjustments is incorrect,” the spokesperson said. said.
Last year, Fraser announced a strategy to restore profitability, vowing to cut 20,000 jobs and simplify the company's business processes.
His tenure has also been embroiled in a series of sexual harassment scandals, leading to accusations that he failed to address the bank's allegedly toxic working environment.
Managing director Ardis Lindsay is suing Citi over allegations that the company's headquarters was a “notorious” environment for women.
Mr Fraser said the bank had simplified its organization to improve accountability, increased investment in data reporting, strengthened stress testing and tightened controls to reduce high-risk processes.
The company's third-quarter results were lower than expected, as bond underwriting boosted the investment banking division's performance.
Earlier this month, it was revealed that Citigroup was under investigation by numerous U.S. government agencies over its ties to sanctioned Russian shadowy billionaire Suleiman Absaidevich Kerimov.
The Justice Department, Federal Bureau of Investigation and Internal Revenue Service are investigating the bank's efforts with Delaware-based Heritage Trust, which holds assets owned by Mr. Kerimov, Bloomberg reported on Nov. 14. Reported.
