Citigroup cuts analyst program to two years to retain talent

Citigroup Inc. reduced its investment banking analyst program to two years from three years, aligning the bank with some competitors as it works to attract and retain employees in a competitive job market.

The change will allow junior bankers at Citi to advance to associate level faster, giving them a quicker path to increased responsibility and higher pay, David Friedland, co-head of North America investment banking, said in an interview with Bloomberg News. The adjustment aims to make analysts less likely to accept offers from rival banks, private equity firms, and hedge funds.

The decision follows similar moves by other Wall Street banks last year after private equity firms began recruiting analysts earlier in their careers. JPMorgan Chase & Co. said it would fire any analyst who accepted an outside job offer within 18 months of joining the firm. The bank also shortened its promotion timeline, allowing juniors to be promoted to associates after two and a half years.

Citi, Goldman Sachs Group Inc., and Morgan Stanley also introduced rules requiring junior bankers to disclose if they accepted jobs elsewhere.

"The reality that private equity is interviewing so early in a banker’s career is very unfortunate and to some extent disappointing," Friedland said. "It’s very hard to make a choice to go into another field in the first month you land on Wall Street."

Current third-year analysts at Citi will be promoted to associate on January 1, 2027, subject to performance. The shortened timeline will reduce the expected progression from analyst to vice president to 5 1/2 years from 6 1/2 years.