Citigroup is cutting its investment-banking analyst programme to two years from three, the bank said on October 5, accelerating promotions as it seeks to retain junior talent amid competition from private equity firms.
David Friedland, Citi’s co-head of North America investment banking, said the shorter programme would bring the bank closer to some competitors and give analysts a faster route to greater responsibility and higher pay. Current third-year analysts will be eligible for promotion to associate on January 1, subject to performance.
Friedland, a 27-year veteran of Goldman Sachs who joined Citi last year, said the earlier hiring practices of private equity firms were creating pressure on banks to change how they manage junior talent. “The reality that private equity is interviewing so early in a banker’s career is very unfortunate and to some extent disappointing,” he told Bloomberg.
The revised programme will reduce the expected time for Citi bankers to progress from analyst to vice president to five and a half years from six and a half. The bank expects the change to make junior bankers less likely to leave for rival banks, private-market investors and hedge funds.
The move follows changes by other major US banks as they respond to competition for junior employees. JPMorgan has said it would dismiss analysts who accept outside job offers within 18 months of joining, while giving junior bankers the opportunity to become associates after two and a half years.
Citi, Goldman Sachs and Morgan Stanley have introduced rules requiring junior bankers to disclose whether they have accepted jobs elsewhere. The changes followed concerns among bank executives over private equity firms bringing forward recruitment schedules and approaching employees shortly after they begin their banking careers.
The promotion changes come as investment banks assess how artificial intelligence could alter junior roles by automating routine work. Proponents of the technology have argued that reducing administrative and analytical tasks could allow junior bankers to spend more time with clients earlier in their careers.
Citi’s investment bank expansion remains a strategic priority for chief executive Jane Fraser, who hired Vis Raghavan in 2024 to lead the effort. Raghavan, previously at JPMorgan, has since recruited bankers from rival firms as Citi seeks to strengthen its investment-banking operation.