Citigroup has become the latest bank to boost fixed pay for hundreds of its high earners in Europe as a way of compensating for rules introduced this year that limit bonuses to up to twice the level of base salaries.
The US bank has sent out letters in recent weeks to senior staff telling them they will receive fixed monthly payments in addition to their salaries, several people close to the situation said.
More than 600 of Citi’s bankers in Europe are affected by the bonus cap and will therefore be paid such allowances, these people added.
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