CITI CHANGES INVESTMENT BANKING PAY STRUCTURE TO END IN-FIGHTING

John Havens, the division's head since March, has told senior managers that a large part of their bonuses will depend on how well they interact with colleagues from other parts of the securities business during meetings of the division's management committee.

The compensation changes highlight the obstacles that Citi faces as its seeks to regain its footing in investment banking after taking more than $40bn in writedowns during the credit crisis.

Mr Havens – a close ally of the chief executive, Vikram Pandit – is seeking to end the “Citi swarm”, the bank's tradition of swamping corporate clients with several bankers selling different products. The practice has long been criticised by rivals and Citi bankers for confusing clients.

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