Jane Fraser’s Citigroup is boosting compensation for most of its junior bankers by as much as 15%, Bloomberg News reported on Wednesday, highlighting the talent war on Wall Street even amid downsizing by some firms over recent months.
The bank is increasing base salaries for associates and vice presidents by an average of 10% to 15%, the report said, citing people familiar with the matter.
Citigroup declined to comment on the report.
In its earnings call last week, Citi Chief Financial Officer Mark Mason warned that elevated inflation would push the bank’s compensation expenses higher this year.
The decision comes after a tough quarter for major US banks that saw profits plunge and bigger provisions for loan losses due to fears of an impending recession.