Citigroup has raised bonuses for its top-performing UK investment bankers by 24% for the 2024 performance year, according to a person familiar with the matter. The increase applies to senior staff in the investment banking division, including managing directors and directors, who received the highest percentage uplift in several years.
Bonus hikes reflect strong dealmaking rebound
The bonus pool for the top tier of UK investment bankers grew by nearly a quarter compared to 2023, as the bank rewarded staff for advising on a surge in mergers, acquisitions, and equity and debt underwriting. Advisory fees for Citigroup’s UK operations rose 18% year-on-year, driven by cross-border M&A and a revival in IPOs.
“The increase is a recognition of the team’s exceptional performance in a recovering market,” the source said. “Deal flow picked up significantly in the second half of the year, and we wanted to ensure our top talent is retained.”
Comparison with broader industry trends
The bonus hike at Citigroup outstrips the average increase across Wall Street banks in London, which is estimated at 10-15% for 2024. Rivals such as Goldman Sachs and JPMorgan have also lifted bonuses, but by smaller margins. The 24% figure places Citigroup among the most generous for senior UK investment bankers this year.
Impact on retention and recruitment
The bonus increase is seen as a strategic move to retain senior bankers amid a competitive hiring market. London remains a key hub for global investment banking, and banks are vying for top dealmakers. Citigroup’s decision could pressure rivals to match or exceed the increase to prevent poaching.
“Bonuses are a critical tool for retention in investment banking,” said a compensation consultant at a London-based advisory firm. “A 24% uplift sends a strong signal that Citigroup is committed to rewarding performance.”
Broader compensation context
The bonus increase comes as Citigroup’s overall compensation costs rose 6% in 2024, driven by higher variable pay. Fixed salaries for most UK investment bankers remained flat. The bank reported a 12% increase in investment banking revenue globally, with the UK contributing a significant share.
Citigroup declined to comment on specific bonus figures, citing confidentiality. The bank is expected to disclose total compensation expenses in its annual report due in March.
