Citi's stock bonuses were paid on Friday, but there is often an issue

Citi's bankers have got their bonuses. Or have they? Multiple insiders at the US bank say the process of awarding stock bonuses at Citi is almost always complicated.

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The issue relates to the ComputerShare accounts, which are credited with Citi's stock bonuses as they vest. However, sources at the bank say the accounts don't update immediately with the vested stock. It can take days and sometimes even weeks for it to appear and it does so only erratically. Selling the stock isn't immediately possible as a result.

"They tell you how many shares they pay you but you often only receive a small amount at a time," says one Citi managing director. "You know the vested price, but you can't sell it," he adds. 

The process is a source of frustration. Although a proportion of Citi bonuses vested in January and then again on February 20th (split across a four year cycle), Citi's stock bonus recipients say it's necessary to repeatedly refresh their accounts to see whether the stock has become available. In some cases, insiders say the stock price has fallen by the time their accounts are finally updated.

The issue doesn't afflict everyone at the bank. We understand that staff who are members of Citi wealth get their shares delivered immediately and can immediately sell them on. Many of those we spoke to said they hadn't been given the option of joining Citi wealth, however. Others claimed that they have to pay commission to sell through ComputerShare and that this isn't the case at rival banks. 

"If this happened at another bank there would be outrage," claims one insider.  

There are nontheless some advantages to Citi's bonuses this year. In a possible response to changing regulations, recipients in London say the bank has removed a one year restriction that prevented them from selling the stock. As a result, February 20th this year saw both last year's and this year's bonuses vesting simultaneously. 

We understand, too, that some senior people already have their full stock allocation in their ComputerShare accounts; others do not. When the stock hits, Citi bankers and traders are free to go. There are suggestions that bankers in some teams will leave due to disgruntlement with recently hired colleagues.

A spokesperson for Citi said: "Citi is committed to a competitive rewards structure. There has been no change to how Citi delivers shares or the options we provide colleagues for share delivery." 

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