Citi cracks down on junior bankers over private equity ‘job-hopping’
Citi has reportedly implemented a new policy where junior bankers are asked if they have other job offers from private equity firms, aiming to curb aggressive recruitment practices.
The memo, sent to analysts’ managers, seeks to promote a fair and transparent environment, with evaluations done case by case and an attestation process that may be repeated annually.
This move by Citi comes as the bank strengthens its investment banking division under new leadership, with Vis Raghavan recruiting senior bankers and other Wall Street giants like Goldman Sachs and JPMorgan taking similar actions to retain talent amid competition.
JPMorgan CEO Jamie Dimon and Goldman Sachs CEO David Solomon have also addressed loyalty concerns with their junior bankers, warning about job-hopping and demanding pledges of loyalty respectively.
The intensified competition for junior bankers reflects the growing appeal of private equity firms, which offer higher pay and diverse deal exposure, as seen in the $1 trillion raised by private equity firms globally in 2024, according to Preqin.
With post-pandemic deal-making on the rise and remote work options increasing, talent competition is growing, making it challenging for banks to retain young talent in the face of private equity firms’ hiring power.
Private equity-backed deals accounted for nearly 30% of global M&A volume last year, complicating banks’ retention strategies in the competitive landscape.
