Back in the day, Citigroup's stock bonus scheme was a great way of becoming very rich indeed. Between November 1995 and August 2000, Citigroup's stock price rose 627%, making its owners extremely wealthy men (and women). Then came the bad times: Citi's stock fell from $55 in 2006 to less than $4 in late 2008. But now? Now things are looking up again.
CNN points out today that Citi's stock has risen 30% since Michael Corbat replaced Vikram Pandit in October in 2012. Corbat is credited with the increase. CNN quotes banking analyst Mike Mayo as saying "The grown ups are back," in reference to both Corbat and Mike O'Neill, Citi's chairman.
Citi's stock has indeed risen meteorically, but Corbat has benefited from a rising tide - Citi's stock price was increasing even before he arrived. In the past seven months, it's risen 75%. This is clearly very good news for all the investment bankers at Citi who have had their bonuses paid in stock deferred over three or more years.
Bankers at rival firms have also benefited from rising stock prices, albeit to a lesser extent. Goldman's stock is up 50% since August 2012. JPMorgan's is up 64%, Bank of America's is up 67%. Sometimes it's good not to receive your bonus in cash.
Separately, the New York Post reports that Goldman Sachs is actively targeting people from Morgan Stanley who are unhappy with their miserly and comparatively heavily deferred bonuses. “People who you thought wouldn’t consider moving are now at least taking our calls,” said one Goldman insider of Morgan Stanley staff.
550 more jobs have been cut at Lloyds. (Scotsman)
Is an MBA worth it? (300Hours)
And is an MBA a worthless degree? (PoetsandQuants)
Credit Suisse is making 94 people redundant in NYC. (Labor.NY)
Phil Desantis, former co-head of global credit at Credit Suisse, is actually retiring. (WSJ)
The former head of wealth management at Deutsche Bank in Asia has set up his own company: Carpera Capital. (Fin News)
Boom area in Europe: real estate funds. (Financial News)
Nomura has let go of 2 out 9 employees in Riyadh. (Bloomberg)
London wants to be the centre for yuan trading in Europe. So does Paris. So does Zurich. (Bloomberg)
Today is Jamie Dimon’s birthday. He’s 57. (DealBook)