Citigroup Inc., the Wall Street banking giant, has announced special retention bonuses for dozens of its employees as part of its strategy to prevent further departures from its wealth management unit.
The move comes as Citigroup aims to stabilize its workforce and retain key talent amid ongoing organizational changes.
Citigroup Addressing Talent Exodus
The decision to award retention bonuses follows a significant exodus of personnel from Citigroup’s wealth management division.
Over the past year, the unit has seen about 20 employees leave, including 10% of its most senior bankers in North America.
The bonuses are intended to reward staff for staying with the company into the next year and to counteract the impact of recent personnel changes.
Andy Sieg was hired last year to lead Citigroup’s wealth management division.
He has been instrumental in reshuffling leadership and reiterating financial targets to improve the unit’s performance.
Andy’s efforts have included aggressive personnel changes, which, while necessary, have caused some friction within the organization.
Despite this, recent results indicate that his strategies are beginning to take hold.
The wealth unit posted a revenue of $2.0 billion for the third quarter, a 9% increase from the previous year.
Enhancing the Workforce for Company Growth
In addition to the retention bonuses, Citigroup is also focusing on hiring more brokers for its entry-level wealth segment, Citigold, by offering improved pay deals.
The company is also working on enhancing its online self-directed investment platform to attract and retain clients.
These measures are part of a broader effort to improve the bank’s performance, reduce costs, and streamline operations under the leadership of CEO Jane Fraser.
Citigroup’s wealth business has struggled to compete with its main banking rivals since the aftermath of the 2008 financial crisis.
However, the recent organizational changes and strategic initiatives have started to show positive results.
Citigroup’s shares have risen nearly 36% in 2024, reflecting investor confidence in the company’s direction.
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