With Brexit still looming and Citigroup still intending to shift some sales and trading jobs from London to Frankfurt, the bank’s London staff might like to know how much they can expect to earn in the German city. The answer is, more than in London in terms of salary, but maybe less in terms of bonuses.
Citigroup’s German global markets business recently released its accounts for 2017. They reveal that the average compensation per head for the bank’s 274 employees in Frankfurt was 243k (euros) ($284k) for last year.
Citigroup Global Markets has yet to release its UK accounts for 2017, but in the last year for which figures are available (2016), average compensation for the 3,515 people at the bank’s comparable UK-based business was $277k. This was supplemented by an average share allocation of $64k, bringing the total average pay in the UK to $341k; 20% more than in Germany.
Citi plans to relocate 150 to 200 sales and trading and related jobs to the UK as a result of Brexit. In the latest accounts for its German markets entity, the bank confirms its intention to transform Citigroup Global Markets Germany into a “securities trading bank” for the eurozone. Citi will expand its “equity, fixed income and FX product ranges…as well as derivatives,” says the report. Commercial banking and securities services roles are being moved to Dublin.
Citi is already understood to have a large trading hall in Frankfurt which is only partly used.
For the moment, Citi's German global markets business comprises a combination of corporate and investment banking (€81.5m in revenues last year), markets and securities services (€ 73.4m in revenues) and treasury and trade solutions ( €21.1m in revenues). Although the London business doesn't split out pay by division, it's almost certainly more skewed towards sales and trading - a disparity that likely explains the higher average pay.
Even so, there are indications that Citi’s Frankfurt business pays a similar amount at the highest level. Pay for material risk takers (senior staff and significant traders) at Citigroup Global Markets in the UK averaged $1.2m in 2016. By comparison, the seven members of Citi Global Markets’ German executive board earned an average of €1.1m ($1.3m) for last year.
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