Citigroup bankers to be paid at least half their bonuses in cash Citigroup is set to pay most of its investment bankers in Europe at least half of their bonuses in cash this year, underlining how US banks continue to be much more generous than their European rivals. The news is likely to revive a debate over European banks" loss of competitiveness after they have been hit by much stricter rules on pay and a tougher economic environment than their US counterparts. Investment banks in the UK, Germany and Switzerland have drastically scaled back their cash payments in recent years amid regulatory pressure, lower profits and political criticism over what some have perceived as excessive bonus structures. Regulators have been pushing for bonuses to be paid mostly in deferred shares to allow for them to be clawed back in the case of losses or wrongdoing. At Citi's Europe, Middle East and Africa unit, its top rewarded bankers - getting bonuses of $5m or more - will be paid 40 per cent in cash for their 2013 performance, according to an internal document obtained by the Financial Times. Bankers in line for up to $3.999m will be paid 60 per cent upfront and anyone with a bonus of up to $499,000 will get three-quarters in immediate cash. Bonuses of up to $100,000 will be cash only. Such large cash proportions are common at US peers such as JPMorgan and Goldman Sachs. "US banks generally tend to defer less than the European banks," William de Quetteville, partner at Armstrong International, an executive search company, said. By contrast, Barclays" remuneration committee is likely to decide in coming weeks to defer for three years 100 per cent of its managing directors" bonuses for the second year in a row, people close to the situation said. Credit Suisse is once again deferring at least 17.5 per cent of bonuses for lower earners and up to 90 per cent for its top-earning staff, according to a recent internal memo. Many European banks also cap their cash payments, with Deutsche Bank for example last year limiting its cash bonus to €300,000. Citi said: "We believe Citi's current compensation structure achieves a balance between the ability to attract and retain employees within a very competitive global market, while ensuring employees are compensated based on ability, contributions and performance over a meaningful period of time." However, most banks in the US and Europe have not changed their bonus structure significantly compared to last year as they spend more energy on working out how to adapt to the new EU bonus cap that limits variable pay to up to twice the level of salary. Investment bankers at European banks are eagerly waiting to find out if they get a higher or lower bonus or a "doughnut" - jargon for no bonus at all. US banks JPMorgan, Citi and Goldman Sachs and Switzerland's Credit Suisse have told their staff in the past few weeks what they will be paid for 2013. Consultants estimate that, on average, bonus pools will be flat to slightly down but with huge disparities between banks and between different business lines.