I find it interesting they decided to cap 401k match at 12k. I know it only impacts high earners but I am wondering what is next. What else do they want to save money on? Our benefits already lack our peers.
No pension and now a sh---y 401k =a horrible retirement plan for the employees
Matching once a year instead of every paycheck and not matching for a full year was already ridiculous.
For those laid off in 2024, how is 401k match calculated? Got a partial amount, no explanation.
You all have no idea what’s coming…2025 looks to be a brutal year for Citi. Top Guy Shadman, left today “comp day” which is interesting in itself. Now they say $600MM in layoffs coming…
The reduction in 401k 6% match down to max $12k for people earning over $200k (= salary + bonus) is also a wicked move by Citi to those in that range to try get them to quit without Citi having to pay packages. (You have no idea what pressure and stress those particular people have to suffer to make that $ range at Citi..
Citi’s overall package is one of the industries worst and to start implementing cuts to that is very questionable which is why it must be part of a much bigger plan..!
If they are doing those sh---y moves now, just imagine what’s to come in 2025/26.
You can't contribute to Roth options directly if you're over the income limit - and, everyone making $200k is over the income limit.
Citi has a Roth 401k which is a better and more appropriate vehicle for post tax retirement contributions.
Most of the high earners will seek out other jobs. What a d-mb decision from our bank… never expected this. I am not even 140k, however knowing this I will be looking out for job sooner.
Its indeed an unfortunate step, and one that even sub-$200k earners should be cautious of since it slows their earnings potential as they grow their Citi career. What would have been nice to see along this undesired change is a positive one that can benefit everyone without any added cost to Citi & shareholders: specifically, to allow employee after-tax contributions to the 401(k). This allows employees to put more into their 401k than the IRS pre-tax contribution limit, helping to reach retirement goals quicker. Other large organizations allow this within their plans but Citi unfortunately does not.
It was 2 things: 1. A cost cutting approach. 2. A virtue signal to lower earners.
To people making over $200K on base salary alone, who are also getting a bonus of $25-50K (TC of $250K) for non revenue-generators, and $100K-$800K+ for revenue generators (TC of $300-$1M+), losing some match that goes into their retirement that they cant touch for 20-30 years is proportionally less impactful as they are higher up that scale. I'd say the people who this affects most are C14s in that $200-$250K range. Again, these will not be revenue generators generally, so if you want to say the bank was sending any kind of signal (intentional or not), this is not surprising and not unique to Citi, as all companies value revenue-generators more than non revenue-generators.
Right, Citi is horrible and doesn't care about emploeeys. I didn't have to work there long to see for myslef. Everyone is expenpenable and Citi leadership is shameless.
This only affects high earners who make over $200,000. I figure they are already getting good raises/bonus in addition to the match. $9,000 less oh well
goes into effect for 2025, paid in 2026.
should impact higher paid SVPs and up.
Do you know when the cap of $12K goes into affect? With match paid in 2025 (on 2024 contributions)?? Or on 2025 contributions?match paid in 2026?
This is a tactic to try drive people out of the higher priced areas. For lower salaried employees, did they allocate the savings there? Of course not.
I have a pension from Citi. Not worth much, but I'll take the $400/month when I retire in a few years.
With the way things are going, I’m not expecting bonus. If I get something, that would be good, otherwise I have been more reserved with my money in case layoffs catches me. Yes things will get worse, but it would be gradual from what I am noticing. Two options in my opinion, just endure and take whatever citi gives you or work on a plan to change jobs
Bonuses in my org are shrinking for some without any explanation of how the calculations are changing, just a vague statement of 'bringing it line with how the rest of Citi works' and insinuating people were overpaid were they came from pre reorg. That combined with 401k drop, lack of promos, lower than deserved ratings, and rising health insurance costs... it will be telling the total % drop in total comp. YOY. Passive layoffs is what this is IMO...
Honestly it’s better they are targeting the high earners over the average workers. I’m assuming it affects vice presidents and above.
For me, it looks like a good sign.