While Morgan Stanley bankers are being asked to get a life and stop complaining about the paucity of their cash bonuses this year, there do not appear to be similar issues at Citi.
Citi announced its bonuses this week, and some people appear to have received large quantities of cash.
“I spoke to a Citi guy this morning who received 75% of his bonus in cash and only had 25% deferred,” alleges one headhunter. “His bonus was around $350k,” she adds.
Others confirm Citi’s large cash component. “There’s no cap on cash at Citi as I understand it,” says the head of a fixed income search firm. “But cash is being paid in two tranches – one now and one in December.”
Citi’s lack of a cash cap stands in contrast to Morgan Stanley, which has capped cash bonuses at $125k. Credit Suisse is also alleged to be capping cash bonuses at CHF140k ($152k), although some claim its cash bonus cap is as low as $100k. Deutsche is also rumoured to be contemplating a cap.
But while Citi is said to be paying reasonable amounts of cash to some people, its bankers may have other reasons for complaint – especially in equities.
“Some of the Citi people I’ve spoken to got around two thirds cash,” says one equities headhunter. “But a lot of people have been paid down. I’ve heard that 40% of equities people got zeros.”
Citi M&A bankers also appear peeved. “People at Citi are telling me their total comp levels are very down,” says an investment banking headhunter. “There are VP2s who are getting paid the amount they received as associate 3s a few years ago.”