Citi insiders react to Vis Raghavan's pay: "Nuts, but necessary"
Is Vis Raghavan well paid at Citi? This depends upon who you ask. It might be argued that Raghavan's $600k salary is low for running the investment bank. But it might also be argued that Raghavan's $22.6m in total compensation for 2024 is high given that Andy Morton, who runs the global markets business, is earning more than $1m less.
Click here to follow our WhatsApp channel, and get instant news updates straight to your phone 📱.
Raghavan only arrived at Citi from JPMorgan in mid-2024. Insiders say his $23m pay package was both "nuts", but necessary to get him on board.
"Jane was keen for a high profile hire and Raghavan took advantage of that," says one recently ex-Citi MD. "This was basically the price to buy him out," says another. Alongside the $23m for last year, Raghavan also received $40m in stock to compensate for the stock he left behind at JPMorgan. As a senior banker, his package is a reassuring sign of his proficiency at negotiating.
Jane Fraser, by comparison was paid $34.5m for 2024 as Citi CEO. One insider said the differential between Fraser and Raghavan should have been far larger: "He's running a really small slice of the overall Citi pie." Raghavan's global banking division accounted for just 12% of Citi's net income and 7% of its revenues last year.
The revelation of Raghavan's pay follows complaints that recent bonuses for many others at the Citi were "abysmal," especially in middle and back office roles. "In general, directors and managing directors here haven't paid well for the last three years," claims one Citi banker in London.
Raghavan's $22m also follows complaints about a new assessment process at Citi which stipulates that only 10-15% of an individual's reports can be rated as exemplary. Insiders say this restricts the proportion of people who can access the high pay levels that match other US investment banks, and that the remaining 85% receive less than their peers elsewhere.
Raghavan's pay implies that he was rated exemplary for 2024 despite joining halfway through the year. It's more likely, however, that he simply negotiated a generous guaranteed bonus for 2024 as a condition of leaving JPMorgan.
It's not clear whether Raghavan will have a similar guarantee for 2025. In time, though, insiders say his package risks causing issues. Morton, who is well-respected internally, should really be paid the same as or more than Raghavan. That he wasn't risks amplifying complaints about Citi paying a premium to hire-in outsiders while neglecting existing talent. Morton has been at Citi since 2008.
Raghavan also received substantially more than Morton to relocate to New York, despite already being the owner of a $15m Manhattan penthouse. Sources say relocation packages can be difficult to compare when children and schooling are involved, though.
The real danger in the long term may be Raghavan's low salary. Citi insiders say that if Raghavan wants to keep earning his $22m of bonuses after his guarantee lapses, he'll need to prove that he's worth it. "Problems are looming!," says one. "He's going to need to generate that money soon."
Have a confidential story, tip, or comment you’d like to share? Contact: +44 7537 182250 (SMS, Whatsapp or voicemail). Telegram: @SarahButcher. Click here to fill in our anonymous form, or email editortips@efinancialcareers.com. Signal also available.
Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libellous (in which case it won’t.)
Photo by Raspopova Marina on Unsplash
