Some Citigroup bankers could receive 90k cash in coming weeks

Backdated salary increases are the new cash bonus.

As was widely reported yesterday, Barclays is increasing MD salaries from 120k to 300k, and backdating the rise to June, implying that some people could receive a cash lump sum of 90k soon.

We understand Citigroup is doing something very similar.

The US bank hiked salaries in the summer, but Derivatives Week reports that Citigroup bankers are due to receive a top up payment in January.

One City-based headhunter claims the payments to be made soon at Citi will be backdated to the start of the year. Given that Citi is alleged to have increased MD salaries by the same amount as BarCap, its bankers could be in line for similar sized payouts.

If true, this would be fortuitous. Citi is now the only US bank which hasn't committed to repaying TARP funds soon. As a result, the bank is heavily under the yoke of the US pay czar and his punitive compensation stipulations.

"This is really just a way of giving everyone a one-off cash payment to compensate for long deferrals," says the headhunter.

Citigroup declined to comment.