Citigroup is increasing salaries and reducing bonuses for top staff to try and keep its best performers, according to media reports: the bank has told some senior executives their salaries could go up by 50 per cent this year.

The biggest increases will go to investment bankers and traders. Staff in consumer banking, credit cards, legal and risk management will see a smaller salary adjustment. The company also plans to award new share options after Citigroup stock dropped 84 per cent in the past year.

“Citi continues to examine ways to ensure its employee compensation practices are competitive in this very challenging market environment,” a Citigroup spokesperson said. “Any salary adjustments are not intended to increase total annual compensation, rather to adjust the balance between fixed and variable compensation.”

The report did not elaborate on whether wealth management positions would be specifically affected by such a pay policy.

Citigroup, along with other banking groups that have received taxpayers’ money as part of aid packages to shore up their capital, have been under pressure to align executive remuneration more closely with the long-term health of such banks. High bonuses have been blamed for encouraging unwise risk-taking by bankers in the run-up to the credit crunch.