Citigroup to part pay bonuses in cash

Banking group Citi is to pay a portion of bonuses awarded to employees for 2013 in cash after linking pay to performance.

Bankers in the organisation’s Europe, Middle East and Africa units, who have been awarded bonuses of $5 million (£3 million) are in line to receive 40% of this in cash. Meanwhile, those in line to receive a bonus of up to $3.99 million will be paid 60% upfront in cash, while those due to receive up to $4.99 million will receive 75% in cash.

Regulators have been pushing for bonuses to be paid mostly in deferred shares allow for them to be clawed back in the case of losses or wrongdoing.

On 1 January 2014, new legislation came into effect to cap European bankers’ bonuses. This will apply to bonuses paid in 2015.

A Citi spokesperson said: “In recent years, Citi has made changes to its compensation programme to strengthen the links between pay and long-term performance.

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“We developed a balanced scorecard approach with financial metrics and non-financial objectives that, in combination, are expected to improve long-term returns to shareholders, within acceptable risk-taking parameters.

“We believe Citi’s current compensation structure achieves a balance between the ability to attract and retain employees within a very competitive global market, while ensuring employees are compensated based on ability, contributions and performance over a meaningful period of time.”