VAULT CAREER LIBRARY Bt VAULT EMPLOYER PROFILE: CITIGROUP CORPORATE & INVESTMENT BANKING BY THE STAFF OF VAULTCopyright © 2006 by Vault inc. All rights reserved. Al information in this book is subject to change without notice. Vault makes no claims as 10 ‘the accuracy and reliabilty of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, flectronic or mechanical, for any purpose, without the express written permission of Vault Ine. Vault, the Vault logo, and “the most trusted name in career information” are trademarks of Vout Ine. For information about permission to reproduce selections from this book, contact Vault Inc., 180 W 22nd Street, New York, New York 10011, (212) 366-4212, Library of Congress CIP Data is avaiable ISBN 1-58131-479-5 Printed in the United States of AmericaCitigroup Corporate & Investment Banking Table of Contents INTRODUCTION 1 Citigroup Corporate and Investment Banking at a Glance... 2 Compensation .. : : ceeeeeees seed THE SCOOP 7 History Business Des 15 ORGANIZATION 23 CEO's Bio, President & CEO of Citigroup Corporated Investment Banking 2.00. 0ccececeeeseeeeeeees cee e tee eeeseeeree DB Business Units .. - : ceeeeee ceeeeee BB Locations .. 225 Ownership 26 Key Offers oe... eee ceeeee cee ee eee e ett ttteeeeeeeee e026 VAULT NEWSWIRE 27 Select Company News .. : : : seeeeee OT Select Recent Transactions ............2e00ec0eees sere BL OUR SURVEY SAYS 39 GETTING HIRED 47 Hiring Process 47 Questions to Expect ....0cccceeee feet e eee 50. ‘hace pon neste tows e Frm et Bond mae” = WAULT S888,Questions to Ask oo... ce cette cee SE ON THE JOB 57 Job Descriptions . A Day in the Life Career Path FINAL ANALYSIS 67 RECOMMENDED READING 69 iv VAULT S8aikt © 2006 Vault Inc.Citigroup Corporate & Investment Banking Introduction Overview Formerly known as Salomon Smith Barney, Citigroup Corporate and Investment Banking (Citigroup) is the investment banking arm of financial services behemoth Citigroup, Inc, Despite living through many a merger in its 130-year history and, in the past few years, many a scandal, Citigroup remains one of the elite units on Wall Street, consistently securing top capital- markets underwriting- and M&:A-advisory mandates throughout the worl. Underscoring the firm’s place near the top of the bulge bracket, Citigroup remained in the upper echelons of several major league tables in 2005, ranking No. 1 in 14 of 25 categories. For the first time, the firm became the No. 1 global underwriter of equity and equity-linked securities in 2005, advising on 498 deals worth a total of nearly $1.3 billion. Citi’s closest competitor in the category was Goldman Sachs, which advised on less than half the number of deals done by Citigroup. Known for its significant global reach, Citigroup boasts offices in every major city around the world As part of its full range of investment banking offerings, Citigroup also provides sales and trading, restructuring advisory, cross-border transaction services, and cash management and treasury solutions. ‘Through parent Citigroup Inc.’s Smith Barney division, more than 300 research analysts deliver equity research, Smith Barney is also Citigroup Inc.’s private wealth ‘management arm as well as the second-largest retail brokerage in the U.S. ‘cr potir messin vowan, ta Frm ne Gondamae” = WAULT GISR5RY 1Citigroup Corporate and Investment Banking at a Glance 388 Greenwich Street New York, NY 10013 Phone: (212) 816-6000 www.citigroupgcib.com DEPARTMENTS Global Banking Investment Banking * Rela Banking Global Markets Capital Markets Equities Fixed Income Foreign Exchange Municipals Global Transaction Services Risk Management Global Portfolio Management THE STATS President & CEO: Robert Druskin Employer Typ Subsidiary of Citigroup Ine. Revenue: $24 billion (FYE 12/05) Net Income: $6.9 billion No. of Employees: 55,000 No. of Offices: 500 KEY COMPETITORS Credit Suit JPMorgan Chase * Merrill Lynch © Morgan Stanley * Lehman Brothers * Bank of America * Deutsche Bank @ * Goldman Sac! * Brand recognition + Reputable training programs ‘+ Opportunity to work on big deals * Diverse workforce The Citigroup name carries a lot of weight outside the firm, and provides a great number of opportunities for those who wish to change jobs after their analyst years are over.” — Citigroup insider DOWNERS * Bureaucracy, lots of red tape ‘* Compensation not commensurate with hours + Long hours ‘© “Can get lost in a ‘+ “Top bank, great platform” + ‘Where's the culture? They soll themselves well but at the end of the day lack a differentiated experience” + “Powerful name" ‘= “knows what they are doing” + “Cold work environment” * “Large shop but not as prestigious as older names” «= “Powerhouse across all sectors, but ot strong in M&A” + “People factory” * "Too big for positive analyst experience” * "Everybody knows Citi” EMPLOYMENT CONTACT Visit the “careers” section of www.citigroupgcib.com 2 VAULT Genet 2006 Vautt IneCitigroup Corporate & Investment Banking ‘Compensation Compensation “ Iwould like the pay to be higher, but all things considered it's a great place to work.” — Citigroup insider Analysts + First-year analyst, corporate banking: $55,000 base + $30,000 bonus + First-year analyst, investment banking: $65,000 base + $30,000 bonus + Second-year analyst/programmer, investment banking: $62,500 base + $2,000-$3,500 bonus + Second-year analyst, commercial banking: $65,000 base + $50,000 bonus + Second-year analyst, commercial banking: $65,000 base + 10,000 bonus + Second-year analyst, investment banking: $90,000 base + $50,000 bonus + Second-year analyst, investment banking: $55,000 base + $25,000 bonus + Second-year analyst, investment banking: $65,000 base + $80,000 bonus + Second-year analyst, corporate finance: $65,000 base + $65,000-$75,000 bonus + Second-year analyst, investment banking: $60,000-870,000 base + $8,000- $10,000 bonus + Third-year analyst, investment banking: $75,000 base + $70,000-80,000 bonus, + Third-year analyst, debt capital markets: $75,000 base + $110,000 bonus + Third-year analyst/programmer, investment banking: $70,000 base + $10,000 bonus + Third-year IT analysts, investment banking: $70,500 base + $4,000 bonus Insert poer, mesrae cower, ta Faunce ne Scodaramow,” = WAULT oCitigroup Corporate & Investment Banking ‘Compensation Associates year associate, commercial banking: $100,000 base + $10,000- $20,000 bonus + Second-year associate, investment ban 12: $110,000 base + $175,000 bonus + Second-year associate, investment banking: $105,000 base + $300,000 bonus + Second-year associate, investment banking: $95,000 base + $125,000 bonus, + Third-year associate, investment banking: $110,000 base + $265,000 bonus + Third-year associate, investment banking: $110,000 base + $350,000 bonus + Third-year associate, investment banking: $105,000 base + $245,000 bonus + Third-year associate, investment banking: $115,000 base + $500,000 bonus, Other + Vice president, commercial banking: $125,000 base + $95,000 bonus + Vice president, investment banking: $115,000 base + $450,000 bonus + Vice president, commercial banking: $115,000 base + $65,000 bonus + Fourth-year vice president, investment banking: $120,000 base + $500,000 bonus + Director, investment management: $160,000 base + $70,000 bonus * Director, corporate finance: $150,000 base + $600,000-$750,000 bonus. * Director, commercial banking: $150,000 base + $110,000 bonus * Director, investment banking: $125,000 base + $1.3 million bonus “L work too many hours and don’t get paid commensurate with the rest of Wall Street.” —Citigroup insider VAULT Genet © 2006 Vault Inc.king Citigroup Corporate & Investment Banking ‘Compensation Perks Benefits include: in the building? subsidized gym (about $46 dollars per month) and cafeter + On-site daycare + Discount at New York Sports Chub + “As a VP, a percentage of compensation is in Citigroup stock, offered at a discount to market” + “Employees are allowed to enter most New York City museums and galleries ano expense” + Firm regularly sponsors speakers and various other events at their offices” + 401(K) (*no matching”) + Stock purchase plans + Free car service if working after 9 p.m, during the week or on the weekend + $20 meal allowance if working late or on the weekend + First-class flights for trips longer than five hours + Nice” hotels for business stays + Occasional lunches + Various discounts-cell phone plans, car purchases, ete. “The firm is very cheap. They don't even match employees contributions like others investment banks.” —Citigroup insider (second-year analyst, investment banking) Insert poner, mesroge cones ta Parcs ob bcasngron,”” = WAULT GQRERY 5Decrease your T/NJ Ratio (Time to New Job) Use the Internet’s most targeted job search tools for finance professionals. Vault Finance Job Board The most comprehensive and convenient job board for finance professionals. Target your search by area of finance, function, and experience level, and find the job openings that you want. No surfing required. VaultMatch Resume Database Vault takes match-making to the next level: post your resume and customize your search by area of finance, experience and more. We'll match job listings with your interests and criteria and e-mail them directly to your inbox. VAULTCitigroup Corporate & Investment Banking The Scoop History The Salomon Story The Salomon brothers (Arthur, Herbert and Percy) founded Salomon Brothers in 1910 as a money brokerage firm, but in 1917, the brothers moved the business into government securities. During the 1960s, the firm began to build its powerful equity underwriting unit and created a corporate finance department, whose director, John Gutfreund, eventually became the firm’s chairman and CEO. It was under Gutfreund’s direction that Salomon became the hyper-aggressive jungle ruled by “big swinging dicks” (big ‘moneymakers) as described by Michael Lewis in his best-seller, Liar’s Poker. Under Gutfreund, Salomon was sold in 1981 to Phibro, an oil and commodities trading firm. Gutfreund and Phibro’s John Tendler became joint CEOs, but Tendler left in 1984, leaving Gutfreund as the sole CEO. During the 1980s, Salomon Brothers grew at a phenomenal rate, cashing in on the decade's bond trading craze. Gutfreund became @ star, taking his place beside other Wall Street luminaries such as Michael Milken and Ivan Boesky (who, like Gutfreund, were both fated to fall). ‘The firm exploded from 2,000 to 7,000 employees in three years, while many Salomon Brothers traders became extraordinarily rich, benefiting from special pay deals that guaranteed them lavish bonuses regardless of company performance. However, Salomon’s weaknesses became apparent when the stock market crashed in 1987. Salomon Brothers became one of the first firms to shut down entire units, closing its municipal bond and commercial paper departments. Later, Salomon received a cash infusion from Warren Buffett, the big swinging chairman of investment firm Berkshire Hathaway, and looked instead into leveraged buyouts (LBOs). That avenue also turned out to be a dead end, as the LBO business dried up in the early 1990s. Solving Treasury bond problems In 1991, the Securities Exchange Commission charged Salomon Brothers with buying Treasury bonds for clients without their permission. It also charged Gutfreund with condoning the illegal sale, Faced with fraud charges and barred from ever participating in Treasury actions again - a death sentence for a firm like Salomon Brothers that generated much of its revenue ‘cr potir messin vowan, ta Frm ne Gondamae” = WAULT GISR5RY 7Citigroup Corporate & Investment Banking The Scoop from proprietary trading (the trading of securities on the firm’s own account, rather than for clients) - Salomon forced Gutfreund to retire, Investor Warren Buffet, who had bought 19 percent of the company in 1987 for over $1 billion, became Salomon’s interim chairman, Buffet installed his lawyer, Robert Denham, as CEO of Salomon Brothers’ holding company, and promoted Deryck Maughan to CEO of the firm’s securities operations. Buffet also replaced several top executives and sold off assets. Buffet’s management reforms reassured the Treasury Department, which allowed Salomon back into Treasury auctions. However, in 1994 the firm lost S1 billion in bad bond deals and had to rescind its policy of tying bonuses to performance after many disgruntled, “underpaid” employees started leaving the firm. In 1995, the firm posted another bad year, which was marked by mass company defections. But Salomon CEO Maughan had been quietly taking control of the company during the early 1990s and managed to revive the firm’s investment banking and trading operations. By 1996, the firm had rebounded: Salomon Brothers’ traders had earned the company $2 billion during the year and its investment banking operations ranked third in underwriting U.S. corporate stocks and bonds. The Smith Barney story Founded in the late 1800s by the union of two investment-banking houses (one led by Charles Barney, the other by Edward B, Smith), the former Smith, Barney had one of Wall Street’s most storied pasts. Smith and Barney founded their respective firms in Philadelphia, but were among the first firms to open on Wall Street and make it the world’s financial capital. For most of the 20th century, Smith Bamey operated as one of Wall Street’s smaller operations, with a small investment banking operation that specialized in equities. That all changed, though, when Sandy Weill came on board. Sanford (Sandy) I. Weill, formerly the chairman and CEO of the Travelers Group, the parent company of Smith Bamey and several other insurance, mutual fund and annuity companies, is largely responsible for taking this traditional old brokerage firm, which, for much of its history, had not shown much ofa yen for expansion, and placing it in front of the rolling snowball of frenetic financial services mergers of the late 1990s. Since he was hired in 1986 as CEO of Commercial Credit, a small Baltimore securities firm, Weill has made a handsome living acquiring companies, cutting costs and selling off unprofitable ventures. In 1988, Commercial Credit purchased Primerica, which had bought Smith Barney a year earlier. In 1993, Weill, as head of Primerica (Weill had taken the better-known name 8 VAULT Genet © 2006 Vault Inc.King Citigroup Corporate & Investment Banking The Scoop of the acquisition), bought Travelers and became the head of Travelers Group. In effect, Weill took a small Baltimore securities firm and built it up, successively buying up larger companies and taking their more marketable names for his own. Along the way, Weill raised the value of Commercial Credit stock tenfold from 1986 to 1996, as the company’s name changed from Commercial Credit to Primerica to Travelers. During that time, however, Smith Barney had begun to stagnate; Smith Barney was a sleepy firm with only 2,000 brokers, and its small investment-banking unit grossed just $157 million for 1992. Mo Weill had big plans for Smith Barney. In 1993, he succeeded in buying back Shearson, his old brokerage, from American Express, and quickly integrated its operations with Smith Bamey’s. The immediate impacts on Smith Barney were enormous. The purchase added 8,000 Shearson brokers to Smith Bamey’s payroll. To support them, Smith Barney had to hire an army of traders and investment bankers. For Weill, however, investment banking wasn’t just a support operation for brokers. Rather, he held dreams of expanding Smith Barney's investment bank o top-tier status. ig towards superpower status To accomplish this goal, Weill hired a Morgan Stanley mergers and acquisition stat, Robert Greenhill, to run Smith Bamey in 1995. Despite Greenhills early successes (with Smith Barney, Greenhill advised on the high-profile Viacom- Paramount deal), the legendary banker proved to be a poor manager who failed to rein in costs and never got his bankers to replicate initial successes. More important, Greenhill could never convince Weill to spend the money he thought a great investment bank needed, especially one with aspirations of an overseas, presence, To Greenhill and many other observers, Weill’s tendency to grow through acquisition and to keep costs low was frustrating the development of a world-class investment bank, In one respect, though, Greenhill did succeed - in prying money from Weill’s, s for himself and his staff. To lure Greenhill and 21 Morgan Stanley bankers to Smith Barney, Weill promised them enormous amounts of money, much of it in guaranteed bonuses. The ex-Morgan Stanley junior bankers, already well paid, saw their total compensation rise to nearly a million dollars a year. These bankers’ large bonuses shrank the bonuses for veteran Smith Barney bankers, souring the climate at the firm so much that some started calling Smith Bamey “Wall Street’s Bosnia.” When Greenhill failed to perform the next year, leading to an IIth-place ranking in domestic mergers, and acquisitions, Weill forced Greenhill to retire in 1996 and replaced him Insert poner, mesroge cones ta Parcs ob bcasngron,”” = WAULT GQRERY 9Citigroup Corporate & Investment Banking The Scoop with James Dimon, Weill’s own longtime right in cutting costs and strengthening Smith Barney’s municipal bond operati But Smith Barney still suffered from a reputation as a “co-manager of choice” for securities offerings. The firm was considered competent enough to handle the issues, but small enough to pose little threat of competition. Many at Smith Barney cringed at this reputation and had begun to question whether Weill and Dimon were serious about transforming Smith Bamey into a strong retail broker with an equally strong investment bank, In September 1997, they got their answer—when the Salomon Brothers‘Smith Barney merger was announced. The first merger—a nice ‘When Salomon Brothers agreed to be acquired by Travelers Group for $9 billion in 1997, industry analysts hailed the combination as a near-perfect fit. Smith Bamey, a retail-driven, domestic firm, would join with Salomon Brothers, a mighty international bond trader. ‘The two businesses rarely competed for the same customers, and, as a “wholesale” operation, Salomon worked primarily with institutional investors, while Smith Barney was the guy who culled your father on the phone. As an investment bank, Sint Bamey was strong in some industries—health care and real estate—and nonexistent in others. Backed by Traveler's muscle, the firm had a respectable equity underwriting business, but only as a co-manager. Salomon Brothers, on the other hand, made most of its money in the 1980s on proprietary trading. Its reputation was primarily as a bond shop, and its stock business had been disappointing. In terms of clients, Smith Bamey serviced mostly a middle market clientele, while Salomon Brothers was strong with large, established corporations. ‘The firms indeed dovetailed nicely. Only 42 banking professionals were laid off as a result of the merger; 1,250 remained. Smith Barney, at the time of the merger, was the country’s second largest brokerage (behind Merrill Lynch) with 10,400 brokers. Meanwhile, Salomon had been seeking to diversify its earnings through an alliance with mutual fund king Fidelity Investments, with Fidelity helping to sell Salomon’s securities offerings. The partnership with Fidelity has since been disbanded. One competitor told Investment Dealers’ Digest in the spring of 1998, after several large deals suggested that the new firm was larger than the sum of its parts, “Smith Bamey never had a hope of being a global player on its own; it never positioned itself that way. But now, with Salomon, it has a chance.” VAULT Genet © 2006 Vault Inc.King Citigroup Corporate & Investment Banking The Scoop The second merger Salomon Smith Bamey had little time to get situated before another deal hit the wires. ‘Travelers and Citicorp agreed to a merger in October 1998, forming a financial services powerhouse. For the investment bankers at Salomon Smith Barney, the move meant the accelerated dissipation of Salomon’s high-paying, risk-taking culture. The Wall Sireet Journal reported panic in the halls of Salomon Smith Barney. Word was of Citicorp’s 1,100 corporate banking officers, only three were earning more than $1 million, while at Salomon Smith Bamey, about 150 out of 1,000 investment bankers were being paid more than $1 million—a sure sign of significant cultural differences. Citicorp moved to quash the rumor, stating that “many more” than three of its top corporate officers were topping seven figures. ‘The second merger led to departures as well, most notably that of Jamie Dimon, who had co-headed Salomon Smith Barney along with Deryck Maughan. Dimon, who had also been president of Citigroup and presumed heir apparent for the Citigroup CEO spot, resigned amid a rapid consolidation of Salomon Smith Barney’s investment banking unit and Citibank’s corporate banking business. Maughan also was moved out of the leadership role, becoming a Citigroup vice chairman, Dimon was # Wall Street favorite and his departure led Citigroup's stock to slightly stumble, Sandy Weill’s former right-hand man was also well loved by his underlings: when he walked onto the firm’s trading floor after the announcement of his resignation, he was given a standing ovation by the 1,000-plus staff on the floor. So why do it? In the 1980s, Sanford Weill dreamed of building a “one-stop shopping’ mncial supermarket offering products as varied as car insurance and put options, credit cards and three-tranch mortgage-backed bonds. In both the Salomon/Smith Bamey and Travelers/Citicorp mergers, the compelling business logic behind the deal far outweighed the concems over potential culture. For example, the TravelersiCiticorp merger made a lot of sense, because the two partners had, for the most part, complementary businesses Citicorp got Smith Barney’s more than 10,000-strong brokerage (which largely sells to individual investors) to hawk its checking accounts, mutual funds and credit cards, along with Traveler’s 100,000 insurance agents and 80,000 part-time Primerica Financial Services insurance agents, At the time, the merger was technically illegal, in violation of the Glass- Steagall Act of 1933, which erected what came to be known as the “Chinese wall” between commercial banking and investment banking. The Inde proter,mesrae cower, ta France eo Sovsramow”” «= WAULTGAS58% 014Citigroup Corporate & Investment Banking The Scoop Citigroup/Travelers deal received a temporary dispensation from the federal government and one year later, in 1999, Glass-Steagall was. repealed. Citigroup essentially drafted the act's replacement, Gramm-Leach-Bliley or the Financial Services Modernization Act, which gave banks the go-ahead to merge into commercial and investment banking behemoths. The name game ‘Though rich in history, the Salomon Smith Bamey name is now itself history. ‘When parent Citigroup combined Salomon Smith Barney's operations with Citibank’s corporate bank, it said it would rename the group Citigroup Corporate and Investment Bank. In a company-wide e-mail in May 2001, Chairman Weill told employees that Citigroup wished to exploit the strength of its Citi brand name and strengthen the “common culture we are developing as Citigroup.” The name change was supposed to take place in the first quarter of 2002 but was postponed until April 2003, when the change became official and the Salomon Smith Bamey name was relegated to memory. According to a company press release on April 7, 2003, “Citigroup's global corporate and investment bank will be known broadly as Citigroup.” This ‘means that on all marketing materials and SEC filings the name Citigroup, not Salomon Smith Bamey, will be used. (However, to distinguish the corporate and investment bank from the rest of the Citigroup empire, the unit is now commonly referred to as Citigroup Corporate and Investment Banking.) Previously, Citigroup had dropped “Salomon” from its brokerage operations and equity research unit, which is now simply called Smith Bamey. Rocky marriage Initial results from the Citicorp/Travelers merger were excellent, and analysts raved about the company’s future. Euromoney named Citigroup's CIB “Most Improved Investment Bank” in July 1999. And in October 1999, Citigroup was able to lure former Treasury Secretary Robert Rubin to the firm, making him chair of the executive committee and part of the chairman’s office. After his appointment, rumors surfaced that Rubin was under consideration for the CEO post at Citigroup and the position of chairman of the Fed ‘Those rumors flickered out as Rubin denied interest in the CEO p ‘Alan Greenspan was reappointed Fed chairman, | Reserve. on and Transitions were reportedly not as smooth at Citigroup's headquarters, as Weill and Reed (who were then co-chairmen and co-CEOs) struggled for control of the company. Reed retired in February 2000, saying he sought the 12 9 VAULT Genakt © 2006 Vault Inc.King Citigroup Corporate & Investment Banking The Scoop tranquility of life outside corporate America, In April 2000, however, The Wall Street Journal published a far different account, reporting that Reed and Weill had clashed over a number of issues, including the bank's Internet strategy, and that some senior managers found the presence of two CEOs disruptive. Citigroup’s board of directors debated the issue for several hours, in February 2000. At one point, Reed rejected @ compromise that would have made him non-executive chairman and left Weill as CEO. After that, the board asked Reed to retire. Jack hits the road Even after Reed retired, with Weill safely at the helm, Citigroup saw its fair share of tumult. In July 2002, Citigroup's star telecom analyst Jack Grubman landed in the middle ofa federal probe after WorldCom—formerly one of the Grubman’s top stock picks—announced that a huge accounting misstatement helped force its bankruptcy. NASD investigators began looking at whether Citigroup's CIB misled investors by publishing positive research on WorldCom and doling out shares of hot initial public offerings to top WorldCom executives in exchange for winning advisory business from the telecom firm, Grubman, who had advised WorldCom on many of its 65 acquisitions, recommended buying WorldCom’s stock until just a few days before the company announced its bankruptcy in late June 2002. ‘The New York State probe extended to Citigroup's CIB’s relationship with AT&T, New York Attorney General Eliot Spitzer subpoenaed Citigroup's, CIB’s and Citigroup’s documents related to Grubman’s sudden decision to change his rating of AT&T's stock just before the telecom giant issued a tracking stock for its wireless division in early 2000 (Citigroup’s CIB was one of the lead underwriters of the deal, which was one of the largest public offerings in history). In a messy media back-and-forth, Grubman had indicated that Chairman Sandy Weill encouraged him to upgrade AT&T's stock rating as part of Weill’s power struggle with Citigroup’s former co- chairman, John Reed. In a public statement, Weill vehemently denied Grubman’s claim, calling it “sheer nonsense.” Weill did admit, though, that he suggested to Grubman “in late 1998 or early 1999, that he take a fresh look at AT&T in light of the dramatic transformation of the company and the industry.” After the denial, Grubman said he lied about Weill’s pushing him to upgrade AT&T in order “to inflate my professional importance and make an impression on a colleague and friend.” Finally, amid the numerous regulatory inquiries, Jack Grubman resigned in August 2002, Once considered one of the most powerful people on Wall Inder poner, mesroge cones, ta Fuarce ao ecwdewsron” = WAULTSQRRY = 13Citigroup Corporate & Investment Banking The Scoop Street, Grubman said the criticism and second-guessing of his work made it impossible for him to do his job. In a letter to Citigroup's CIR’s CEO Michael Carpenter, Grubman said he regretted having “failed to predict” the collapse of the telecommunications industry, but he said, “I am nevertheless, proud of the work 1, and the analysts who worked with me, did.” According to The New York Times, 10 of the 25 largest bankruptey filings in the U.S. were made by telecommunications companies, and Grubman recommended the stocks of every single one of them, According to Citigroup’s CIB, Grubman’s resignation was made by “mutual agreement.” One month later, Citigroup's CIB’s Chairman and CEO Michael Carpenter were ousted. Carpenter wasn’t, though, completely banished from the Citigroup empire; he was reassigned as head of Citigroup’s $100 billion proprietary investment portfolio. Carpenter's replacement was Chuck Prince, dubbed “the Fireman” because he was expected to put out the regulatory fires. As a further signal that Citigroup meant business and was willing to reform and repent, Sandy Weill issued a public apology, saying, “Although we have found nothing illegal, looking back, we can see that certain of our activities do not reflect the way we believe business should be done. That should never be the case, and I am sorry for that.” Settling up—big time At the close of 2002, Spitzer announced that the nation’s largest securities, firms had agreed to settle his investigation into conflicts of interest among firms’ advisory and research units. Collectively, some 10 firms agreed to pay fines totaling $1.4 billion for various securities violations. The announcement came less than two months after Citigroup announced the creation of a new unit that would encompass its equity research and private client units, thus separating research from its advisory business. Thirty- seven-year-old Sallie L. Kraweheck was tapped as the chairman and CEO of the new unit, which uses the name “Smith Barney.” At the time of the announcement, the private client business had already been known by this, old-fashioned moniker. While the announcement of the total settlement involved in the conflict-of- interest investigation came in late 2002, the firm-specific details of the settlement didn’t become public knowledge until April 2003. Citigroup's portion of the settlement totaled $400 million, which was the largest chunk, and double the amount owed by the next highest payer, CSFB, which agreed to a fine of $200 million, Along with the firm-specific details, federal regulators also revealed the final verdict in the case against ex-Citigroup 14 = VAULT Sénskt © 2006 Vault Inc.King Citigroup Corporate & Investment Banking The Scoop analyst Jack Grubman, The SEC announced that it had fined Grubman $15 million for alleged conflicted research, and barred him for life from the brokerage business. Under the agreement with the Feds, Grubman would not have to admit or deny any wrongdoing in connection with the allegations. WorldCom of trouble Still, Citigroup's regulatory troubles were far from over. In February 2004, Citigroup agreed to pay $2.65 billion to investors who bought WorldCom stock and bonds before its bankruptcy filing in 2002. The payment was the largest ever by a bank, brokerage firm or auditor to settle a fraud case brought by investors who bought securities issued by a corporation that was also advised by such a firm, It was also the second-largest amount ever paid to settle a securities class action suit. Under the terms of the settlement, Citigroup agreed to pay $1.46 billion to settle the claims of investors who bought WorldCom bonds issued in May 2000 and May 2001. The remaining $1.19 billion was allotted to investors who bought WorldCom stock and its, other publicly traded securities, Citigroup denied that it violated any laws and said it agreed to the arrangement to eliminate the uncertainties, burden and expense of litigation. Making the cut Regulatory hassle 2 market led to some serious job cuts at Citigroup. In October 2002, the unit eut more than 1,000 jobs, including more than 200 investment bankers, due to the weak investment banking market. And in February 2003, the firm made another unpleasant announcement, unveiling plans to sack up to 450 more employees as part of a new strategy of streamlining coverage of its corporate clients and eliminating any relationship management crossover between the commercial and investment businesses. By the end of 2003, employment at Citigroup had declined about 25 percent since 2001. combination with a weak investment-banl Business Description Changing of the guard In December 2003, Chuck Prince, Sandy Weill’s unlikely pick for Citigroup Inc. CEO, succeeded the illustrious executive as head of Citigroup. Robert Druskin, a longtime affiliate of Sandy Weill, took over Prinee’s previous role Inder poten, mesroe cones, ta Faarce eb ecwdewsroe” = WAULTSQRRY = 15Citigroup Corporate & Investment Banking The Scoop as CEO of Citigroup Corporate and Investment Banking. ‘The new chief executive's ties to Weill date back three decades to when Druskin worked for Shearson Hammill & Co., which was acquired by Weill’s Hayden Stone Inc. in 1974, Druskin has also worked closely with Chuck Prince since joining ‘Smith Barney in 1991, During Prince’s tenure as CEO of Citigroup Corporate and Investment Banking, Druskin worked with his predecessor to separate the corporate and investment bank from the firm’s Smith Barney stock research unit. When Druskin took over the reins, he told The Wall Street Journal that his goal was “to be No. | in every market and every product in which we compete, We believe this is an achievable goal. But it’s not going to happen in *04.” In May 2005, Citigroup appointed Raymond J. MeGuire to be global co-head of investment banking. MeGuire, who leads the group with Alberto Verme, ‘was hired from Morgan Stanley, where he was co-head of global M&A. And in January 2006, Ellen Alemany was named CEO of global transaction services (GTS), one of Corporate and Investment Banking’s three global business units. In this role, Alemany, who for the past four-and-a-half years was head of Citigroup's commercial business group, leads the I-banking unit's continued growth of the GTS business. In 2008, GTS was named Rest Bank for Cash Management by Euromoney for an unprecedented seventh consecutive year and launched several products, including Treasury Vision and SMA Solutions, which The Banker recognized as Back Office Solution of the Year. In October 2005, Alemany was ranked No. 5 on U.S. Banker's annual 25 Most Powerful Women in Banking list. Leading the league tables again During the fourth quarter of 2004, for the 13th-consecutive quarter, Citigroup was the leading bookrunner for debt, equity and equity-related issues, according to Thomson Financial. Citigroup worked on over $534 billion in deal activity, good enough for a 2.1 market-share point lead over No. 2. Morgan Stanley. For the full year of 2004, Citigroup ranked No. 1 yet again in that category, and also gained a top ranking in disclosed investment banking fees, booking over $1.72 billion, a slight decrease from 2003°s $1.78 billion. The bank dropped a spot in global equity and equity-related issu to No. 3 from its No. 2 position in 2003. But Citigroup maintained its top ranking in global debt, working on $486.8 billion worth of offerings. And for the first time in a decade, Citigroup displaced CSEB as the No. | global high-yield debt underwriter, working on 124 issues worth $23.5 billion. It was the highest volume ever for Citigroup, 16 = VAULT Sanskt © 2006 Vault Inc.King Citigroup Corporate & Investment Banking The Scoop largely a result of the firm’s role as sole bookrunner on Rogers Wireless’ $2.36 billion issue, the largest high-yield bond ever from a Canadian issuer, as well as the year’s largest, and the eighth-largest deal on record. For the fifth year in a row, Citigroup was No. I in investment grade debt underwriting. The firm’s proceeds totaled $138.8 billion on 526 issues, the second-highest volume in the past five years. Don't forget its M&A prowess Citigroup’s M&A results may be overshadowed by its outstanding capital markets performance, but the firm’s advisory practice is still extremely strong. In 2004, according to Thomson Financial, Citigroup retained its No. 3 position in worldwide announced M&A, working on 377 deals with a total value of $484.4 billion, a 114 percent improvement over 2003. ‘The firm advised on three of the largest deals of the year: the $80 billion stock swap involving Royal Dutch Petroleum and Shell Transport & Trading, Sanofi’s $65.7 billion bid for Aventis, and Cingular Wireless’ $47.1 billion acquisition Of AT&T Wireless. Citigroup’s role in these deals accounted for 40 percent of its M&A dollar volume. Additionally, Citigroup maintained its No. 2 position in Latin American announced M&A, with $10.5 billion in deals. It also jumped to No.1 from No, 8 in Canadian announced M&A, with $17.1 billion on eight deals, thanks to advising on the largest two Canadian deals of the year. Something to show for it In 2005, Citigroup showcased its elite position in the market, accounting for 34 percent of Citigroup Inc.’s overall revenue, bringing in $2.05 billion in net income in the fourth quarter alone, more than the division pulled in for the entire year in 2004, Investment banking revenue increased 3 percent in the quarter, as record advisory revenue, up 25 percent, was offset by a decline in debt and equity underwriting. Citigroup’s 2005 performance confirmed its status as a force to be reckoned with on Thompson Financial’s league tables. In fact, Citigroup ranked No. 1 on 14 out of the 25 league table categories. For the firs time, the firm became the No. 1 global underwriter of equity and equity-linked securities, advising on 498 deals worth a total of nearly $1.3 billion. Citi’s closest competitor in the category was Goldman Sachs, which advised on less than half the number of deals Citigroup did. Citi also topped the charts in U.S. equity capital markets, raising $20.5 billion on 108 issues. That's a two-spot jump for the Insert poner, esse cones, ta Parcs so Bowsngror,”” =—=— WAULT GARRY = 17Citigroup Corporate & Investment Banking The Scoop firm, which came in at No. 3 in 2004, when it raised $19.7 billion. A key contributor to Citigroup's success in 2005 in this category was a $2.5 billion follow-on offering by XL Capital Ltd., which the firm co-led with Goldman Sachs. In M&A, Citigroup slipped slightly in announced deals, but sealed the deal oon several, bumping its status in completed M&A. The firm moved up three spots in 2005 to No. 2 in worldwide completed M&A, advising on 313 deals worth a total of $549.2 billion. For U.S. completed M&A, Citi jumped three spots again to No, 2, advising on 118 deals worth a total of $228.9 billion. Deals for the scrapbook Citigroup demonstrated its strength in a combination role as advisor, financier and investor in 2005 on Deutsche Annington Immobilien GmbH’s $12.8 billion acquisition of Viterra AG This was the largest-ever real estate transaction and private equity investment in Germany, a deal that brought together teams from fixed income, investment banking and Citigroup Alternative Investments. Aso in 2005, Citigroup helped China National Petroleum Company (CNPC) complete the largest-ever cross-border. M&A transaction by a Chinese company when it acquired PetroKazakhstan for $4.18 billion. Working with Citigroup teams from M&A, energy and fixed income, and with coverage bankers from Hong Kong, China, London, New York and Canada, CNPC achieved its goal, completing the transaction in just four months. In Latin America, Ternium, a global steel production and manufacturing company, turned to Citigroup in 2005 to finance its tender offer for 9.3 percent of the shares of Hylsamex S.A. de C.V. The $1.38 billion deal was the largest corporate debt financing ever structured in Argentina, Also in 2005, Citigroup’s U.S, municipals team worked with local governments and agencies, energy companies, rating agencies, municipal bond insurers and investors to finance a $240 million project in Port Fourchon, Louisiana, which would replace and repair key infrastructure that was damaged by Hurricanes Katrina and Rita. And the list just keeps on going Citigroup ought to write a how-to book on winning awards. The bank added another slew of them in 2005 to its already overcrowded trophy case. Asia ‘Money honored Citigroup with its 1PO of the Year award for its work on Asset Magazine gave Citigroup awards in three VAULT Genet © 2006 Vault Inc.King Citigroup Corporate & Investment Banking The Scoop categories: Best Cash Management, Asia; Best Cash Management Specialist, Corporate; Best DR Bank, Asia, Euromoney just couldn’t seem to get enough, naming Citigroup winner in over 25 categories for 2005, including Best Investor Services; Best Bank, Latin America and Mexico; Best Investment Bank, Egypt; and Best M&A House in Estonia, Iceland and Nordic/Baltic. Finance Asia also was impressed with Citigroup in 2005, calling the firm Best Foreign Bank in Hong Kong, India, Korea, the Philippines, Singapore, Taiwan and Thailand. Global Finance named igroup its No. I firm in seven categories, including Best Bank, Industrial, Chemical Sectors, Global; and Best Emerging Market Bank, Latin America; and World’s Best Banks, North America, Finally, Trade Finance Magazine named Citigroup Best Trade Finance Bank, Asia Poaching machine Rival bank Lehman Brothers suffered a big loss in July 2006, when Citigroup poached six of its financial institutions group investment bankers. The most senior hire was Henry Michaels, a 20-year veteran of Lehman and Merrill Lynch who was named co-head of Citigroup's diversified financial services group, which he runs with Craig Stine. Also joining Citigroup from Lehrman: John Roddy, as managing director; Jerry Wiant, as director; Sean Burke, as vice president; and John Minor and Donald Lacey, as associates. According to MarketWatch, the hired bankers started at Citigroup about a month after the announcement, “after taking 30 days ‘garden leave’ to comply with non- compete provisions in their Lehman contracts.” Justa few months earlier, in May 2006, Citigroup was out poaching again, when it hired from Goldman Sachs two bankers for its China investment banking group. Sheng Wu, an investment banking vice president in Goldman’s China office, was named a director at Citigroup. And Yehong Ji, from Goldman’s institutional equity division, joined Citigroup’s investment banking group in China as a vice president. According to Wall Street Folly, an industry blog, “The two new recruits to Citigroup’s expanding China investment banking team is the latest stanza in what is becoming a genuine hiring binge. In March, Jing Zhao joined the firm from Morgan Stanley as managing director in team, In tum, Citi’s raid on Morgan Stanley's China investment banking team. comes afier the latter poached Kai Yang from Citigroup. The swapping between the banks was seemingly set in motion after Morgan Stanley’s high profile hire of Wei Christianson to lead its China business in January. She previously served as Citi's chairman of China for global markets.” investment banking Insdertimponer, messoecowen, ta Fnarce sb bowd ower” = WAULT GARRY = 19Citigroup Corporate & Investment Banking The Scoop Broken promises By halfway through 2006, shareholders began speculating that Citigroup Ine. -O Charles Prince was not sticking to his promise to control expenses at the bank. At the beginning of 2005, Prince swore to investors that he'd prioritize repairing the bank’s tarnished image and that revenue would increase faster than expenses. But, in August 2006, The Wall Sireet Journal, on the front page of its Money & Investing section, said, “Mr. Prince, who also is Citigroup’s chairman, has struggled to keep his vow, and one result is that Citigroup's stock has continued to struggle while competitors in the U.S. such as Bank of America Corp. and J.P. Morgan Chase & Co. watch their fortunes rise along with their share prices.” The Journal article went on to say that Citigroup's largest individual shareholder, Saudi Prince Alwaleed bin Talal, was calling for Prince to cut expenses. But, Prince responded by telling the Journal that he refused to “starve the business” in order to energize the long- underperforming stock. With competition on Citigroup's tail—For the first time ever, Bank of America... reported earning higher net income than Citigroup” in the second quarter of 2006, said the Journal—pressure is mounting on Prince and his senior executive team to get it in gear. Suspicious behavior Later in August 2006, rumors began flying that Charles Prince and other top Citigroup executives were beefing up their pay packages through dividend payments not cleared by shareholders. According to The Wall Sireet Journal, “The footnotes of Citigroup’s annual executive-compensation report show that top executives who receive restricted stock get quarterly dividend payments on the shares ftom the moment they are awarded, not years down the line when the executives may gain control of the stock.” The Journal said that through this practice Prince more than doubled his 2005 salary of $1 million, Senior execs at Citigeoup maintained that the additional compensation was awarded on a “pay-for-performance” basis, but shareholders, said the Journal, “say special compensation arrangements like front-end dividend payments on unvested restricted shares are little more than “pay for pulse” arrangements that are not in investors’ best interests.” Citigroup found itself answering questions again in August 2006, when its, retail—brokerage unit was fined $1.1 million for being involved in a plot to waive mutual—fund sales charges by using false disability claims. Citigroup, 20 = VAULT Sanakt © 2006 Vault Inc.King Citigroup Corporate & Investment Banking The Scoop reported The Wall Street Journal, “was ordered to pay a $400,000 fine and $715,000 in restitution to several unidentified mutual funds after [The National Association of Securities Dealers] discovered more than 100 company brokers improperly obtained thousands of mutual fund sales-charge waivers by falsely claiming that their customers—including several hedge funds—were ‘disabled’ individuals.” At the time the fine was announced, five current and former Citigroup employees had been identified, but investigations into other brokers were ongoing. Raising the Barr In September 2006, Citigroup shook things up in its hedge-fund unit, Tribeca Global Management, when well-known hedge-fund manager Tanya Styblo Beder stepped down as CEO. Dean Barr, head of investments in Citigroup’s alternative investments division, was tapped to replace her. Still responsible for his existing duties as investments head, Barr will work alongside global equities head Oliver Dobbs, who was promoted to the newly created position of chief investment officer. According to Financial News, “Beder’s departure is a second blow to the group after Michael Carpenter, chief executive and chairman of Citigroup Alternative Investments, resigned in March to set up his own venture.” And The Wall Street Journal said about Tribeca Global Management, “The smallest of Citigroup's four divisions, the roughly five- year-old unit has struggled this year after a strong 2005 performance. It produced $1.4 billion in net income last year, up 87% from a year ago.” The division is doing what it can to gain some momentum. Shortly after taking the helm, Barr found himself in talks with Amaranth, a hedge fund famous for making bad bets on natural gas resulting in a $6 billion loss, in which Citigroup was rumored to be buying a stake. According to BusinessWeek, “If Citigroup buys some or all of Amaranth, it would mark the bank’s latest effort to expand its alternative-investment business.” But a few weeks after talks began, reports surfaced that they began breaking down. On the last day of September 2006, The Wall Street Journal reported that ‘Amaranth was suspending withdrawals, adding, “The decision by the hedge fund came after talks about a possible purchase of assets by Citigroup Inc. broke down.” cl Under intense pressure to boost revenue, Citigroup CEO Charles Prince announced in September 2006 a plan to improve customer service, which he hopes will in turn make the bank more money. The program, “Clients First,” nts first Inde proer, message cower, ta France eo Savana,” «= WAULTSAS58% 24Citigroup Corporate & Investment Banking The Scoop was rolled out across all businesses and regions, and Citigroup set up a designated advisory board to monitor progress of the initiative; an internal web site also was set up for employees to voice their concems or make suggestions, The plan marked the second time Prince has tried to implement big changes at the bank. ‘The first, when Prince outlined a Five Point Plan to get the back on track after a series of scandals, resulted in the Federal Reserve in April 2006 lifting a yearlong ban on big acquisitions. Prince has equally high hopes for the Clients First plan, which comes amid not only scrutiny about his own pay package, but also pay to keep up with other Wall Street investment banks. 's decision to increase bankers’ VAULT Genet © 2006 Vault Inc.Citigroup Corporate & Investment Banking Organization CEO's Bio, President & CEO of Citigroup Corporated Investment Banking Robert (“Bob”) Druskin Is president and CEO of Citigroup Corporate and Investment Banking A graduate of Rutgers University, Robert Druskin started off his career at Shearson Hammill & Co. in 1969. Fifteen years later, the brokerage firm merged with Sandy Weill’s Hayden Stone, marking the beginning of a three decade long affiliation between Druskin and Weill. Shearson Hayden Stone, as the new firm was called, soon underwent further name changes, eventually becoming Shearson Lehman Brothers. Weill left the firm in 1985, but Druskin stayed on, moving up the ranks to become chief finaneial officer and a member of the executive committee. In 1991, Druskin left as well, joining Smith Barney, a subsidiary of Primerica, for which Sandy Weill had recently paid $1.5 billion. Druskin came on board as a senior executive vice president and chief administrative officer and was named vice chairman in 1993. From April 1996 to August 1997, Druskin took a brief hiatus to serve as head of asset management and the futures division before returning to his previous role as chief administrative officer. {In September 2000, Druskin became chief operations and technology officer for Citigroup Inc., but came back to the Citigroup Corporate and Investment, Banking about two years later, as president and COO. At the same time, Druskin became chairman of the firm’s business practices committee. Finally, in December 2003, Druskin replaced Charles Prince as chief executive of the investment banking unit s the Board of Overseers of the Druskin is on the Rutgers Board of Truste Rutgers University Foundation, and the Dean’s Advisory Committe Druskin also serves on the Board of Trustees of NYU Downtown Hospital. Business Units Equities Citigroup provides equity capabilities through its sales and trading platform and equity research to institutional and retail investors. The group is ‘trom tte, messoe bows tw Proce oo Boow ondmore AULT Gi825% 23Citigroup Corporate & Investment Banking Organization comprised of over 2,000 professionals working in every major city worldwide. In Japan, the equities unit has a joint venture with Nikko Cordial Corporation called Nikko Citigroup. The equities division is further subdivided into alternative commission services, cash equities, equity capital markets, convertibles, portfolio trading, global prime brokerage, global client ‘management, and equity derivatives, equity linked and warrants. In 2005, the firm became the No. 1 global underwriter of equity and equity-linked securities, advising on 498 deals worth a total of nearly $1.3 billion. Fixed Income Citigroup is a leader in fixed income underwriting, structuring, sales and trading, asset-backed and mortgage-backed securities, syndicated loans, structured products and futures products. In 2005, Citigroup’s fixed income group demonstrated its strength in a combination role when it worked on Deutsche Annington Immobilien GmbH’s $12.8 billion acquisition of Viterra AG. This largest-ever real estate transaction in Germany brought together Citigroup teams from fixed income, investment banking and altemative investments. In the first quarter of 2006, fixed income market revenue reached a record $3.15 billion, up 8 fom the same period in 2005. Compared with the fourth quarter 2005, fixed income market revenue increased 51 percent. Investment Bankin: Citigroup’s investment banking group provides financial advisory and capital raising services to comporations, financial institutions and governments across the globe. The unit's product expertise includes mergers and acquisitions, structured products and capital markets. In 2005, the firm was No. 2 in worldwide- completed M&A, advising on 313 deals worth a total of $549.2 billion, Relationship Banking Citigroup’s global relationship banking group provides financial services to multinational clients worldwide. The group is organized along industry lines (as, opposed to regional). Relationship bankers are specialists in a full array of corporate banking solutions from cash management, foreign exchange, custody, clearing and loans to capital markets, derivatives and structure products. Research Citigroup's global research capabilities include: Smith Barney Citigroup Equity Research, economics and market analysis, fixed income research, and foreign 24 = VAULT SEnsit © 2006 Vault Inc.King Citigroup Corporate & Investment Banking Organization exchange research, Smith Bamey Citigroup Equity Research encompasses more than 300 professionals who cover 3,200 companies from 22 offices worldwide. The unit's research covers companies of all sizes in every major market in the world. The economics and market analysis team is comprised of ‘50 analysts who analyze the financial market implications of global economic: and policy developments. The fixed income research group boasts 250 analysts covering U.S. government, corporate, high-yield and mortgage and asset- backed securities markets. The foreign exchange research division-which analyzes fundamental trends, flow analysis and technical developments- consistently eas Euromoney’s award for Best Foreign Exchange Bank. Transaction Services Citigroup’s global transaction services group provides integrated cash management, trade and securities services for corporations, financial institutions, intermediaries and governments. The division has more than $8 m in assets under custody and the largest proprietary branch network. Locations Citigroup boasts offices in every major city around the world. In the U.S., the firm has outposts in the following locations: + Atlanta * Boston * Chicago + Cleveland + Dallas + Los Angeles + Milwaukee + Minneapolis + New York + Philadelphia + San Francisco + Tampa Insdertm poten, mesroe cones, ta Faarce eb ecwdewsroe” = WAULTSQRRY = 25Citigroup Corporate & Investment Banking Organization Ownership Citigroup Corporate and Investment Banking is a subsidiary of financial services giant Citigroup, Inc., which was formed by the 1998 merger of Travelers Group and Citicorp. Citigroup is traded on the New York Stock Exchange under the stock ticker Key Officers Key officers for Investment Banki President and Chief Executive Officer: Robert Druskin Chief Operating Officer of Global Banking: Alan MacDonald Chief Financial Officer: Hans Morris Co-Head, Investment Banking Division: Alberto Verme Co-Head, Investment Banking, : Raymond McGuire Head of Global Transaction Services: Ellen Alemany Co-head of Fixed Income: Randolph Barker Co-head of Fixed Income: Geofttey Coley CEO, Global Capital Markets: Tom Maheras CEO, Global Banking: Michael Klein Head of Global Risk Management: Jessica Palmer Head of Global Equities: James Forese Citigroup Corporate & Investment Banking is a subsidiary of Citigroup, Inc. is Charles O. (“Chuck”) Prince. Citigroup Inc. + chairman and C 26 VAULT Geant 2006 Vault Inc.King Citigroup Corporate & Investment Banking Vault Newswire Select Company News September 2006: Hedge fund shakeup Dean Barr, head of liquid investments at Citigroup Alternative Investments, was picked to add to his duties CEO of Citigroup’s hedge fund group, Tribeca Global Management LLC. Barr replaced the better-known Tanya Styblo Beder, who, in a management shake-up inside the group, stepped down, August 2006: Suspicious rewards Citi’s executive compensation report-specifically, footnotes about dividend- rewards agreements for top execs-raised eyebrows. According to The Wall Sireet Journal, “Many Citigroup stockholders aren’t so convinced that pay for performance is what is occurring at Citi, They say special compensation arrangements like front-end dividend payments on unvested restricted shares, are little more than ‘pay for pulse” arrangements that are not in investors” best interests.” July 2006: Making ‘em proud Citigroup Ine. reported net income for the second quarter of 2006 of $5.27 billion, down slightly from the $5.64 billion reported in the previous quarter. But corporate and investment banking revenue was the second highest ever, increasing 31 percent, while income grew 26 percent June 2006: Best in Asia Global Finance magazine chose Citigroup as Asia’s best investment bank, for its work on deals announced or completed for the last three quarters of 2005, and the first quarter of 2006 were considered. The award was decided by the ‘magazine's editors and with input from analysts and industry experts. May 2006: Out in front in Israel In the first year that the Israeli shekel was included in the annual Euromoney FX poll, Citigroup was voted the leading bank in shekel trade. Gus Felix, managing director of Citigroup Israel, said, “The results testify to Citigroup's, ‘trom tte, messoe bows tw Proce oo Boow ondmore AULT Gi825% 27Citigroup Corporate & Investment Banking leading role in the field of shekel trade and underline Citigroup’s commitment to the Israeli market.” April 2006: Running start Citigroup, Inc. reported net income of $5.64 billion for the first quarter of 2006. ‘The firm’s corporate and investment banking unit pulled in record revenues, up 21 percent from the same period in 2005, driven by strong franchise momentum. March 2006: Succeeding the throne Citigroup, Ine. CEO Charles Prince was elected chairman, to succeed Sanford ‘Weill, who held the post title for more than 20 years. Prince became official oon April 18, 2006 at the company’s Annual Shareholder meeting, where Weill announced his retirement. March 2006: A rare move Citigroup became the first level data position, John Bottega was named chief data officer of Citigroup Corporate & Investment Banking, where he is responsible for planning and managing the investment bank’s data strategy, policies, fine functions and data investments. ever financial institution to formally create a c= February 2006: Props in Latin America Citigroup was named Global and Latin American “Best Overall Bank for Cash Management” by Global Finance magazine. Citigroup's Latin American operations won four of the six awards in the region. The company won a total of nine awards globally in the six different categories, making Citigroup the top in number of awards won in the 2006 edition of the Global Finance Best Treasury and Cash Management Banks and Providers Awards. January 2006: Paying the price Citigroup Inc. reported net income of for the fourth quarter of 2005 of $6.93 billion, a dip from the $7.14 billion reported in the third quarter. By way of explanation, CEO Charles Prince said the fourth quarter results include “a $600 million pre-tax release of WorldCom/Research litigation reserves, which reflects our continued progress in favorably resolving these matters.” 28 VAULT Gait © 2006 Vault Inc.King Citigroup Corporate & Investment Banking December 2005: So long, asset management Citigroup completed the sale of its asset management business to Lege Mason, in exchange for Legg Mason’s broker-dealer bu: consideration. The sale resulted in a fourth quarter 2005 gain of approximately $2.1 billion yess and other November 2005: Internet accolades Citigroup was named the “Best Global Internet Bank,” and the “Best Corporate and Institutional Internet Bank” for 2005 by Global Finance. About the honor, I-banking president and CEO Bob Druskin said, “We are using the Intemet as an important channel to provide our services to our clients worldwide. It allows us to complement our on the ground presence in over 100 countries.” October 2005: Flying high Citigroup Inc. reported net income of 2005 of $7.14 billion for the third quarter. CEO Charles Prince, in the company’s earnings release, said, “Corporate and investment banking revenues increased 35 percent, including record revenues in transaction services and strong revenue growth across fixed income markets, equity markets, and investment banking.” September 2005: Good chemistry Citigroup, Ine. grew its Board of Directors to 17 members with the election of Andrew N. Liveris, president and CEO of The Dow Chemical Company. August 2005: Internal merging Citigroup completed the merger of its two intermediate bank holding companies, Citigroup Holdings Company and Citicorp, into Citigroup. The merger marks the final step in the company’s previously announced consolidation of capital markets funding activities July 2005: Oh Canada Citigroup announced that it has reached an agreement to provide transfer agency, fund administration and related services to AGF Management and other fund managers in the Canadian market. ‘The 10-year relationship wi give Citigroup an immediate leadership position in the securities service industry in Canada Ino tim tte, messoge omar, ta Fron Joo Boovenanons” —— WAULT SG8885 29Citigroup Corporate & Investment Banking June 2005: Kaden j Citigroup announced the appointment of a new cl e officer, Lewis Kaden. In his new position, Kaden will preside over operations and technology, human resources, corporate affairs and philanthropy, business practices, M&A execution, government affairs, risk and compliance, legal and community relations. s Citigroup f administra June 2005: Settling over Enron Citigroup announced that it agreed to a settlement in its Enron class action litigation suit, Per the terms of the agreement, Citigroup will pay $2 billion to the settlement class. April 2005: A record quarter Citigroup reported record net income of $5.44 billion for the first quarter of 2005, CEO Charles Prince noted that the firm’s “fixed income and transaction services businesses performed exceptionally well, both achieving record revenues.” March 2005: Forking up Citigroup settled class action litigation brought on behalf of purchasers of Global Crossing securities, agreeing to pay $75 million pre-tax and $46 million after tax to the settlement class, January 2005: Selling to MetLife Citigroup agreed to sell Traveler's Life & Annuity, virtually all of Citigroup's international insurance business, to MetLife for $11.5 billion, The transaction will make MetLife the largest individual life insurer in North, ‘America based on sales. September 2004: Musical chairs Todd Thomson, CFO and head of strategy, was appointed chairman and CEO of Smith Barney, the company’s global private client wealth management and equity research unit. Sallie Krawcheck, chairman and CEO of Smith Bamey, ‘was appointed Citigroup’s CFO and head of strategy. VAULT Genet 2006 Vault Inc.King Citigroup Corporate & Investment Banking August 2004: Ki Citigroup entered into a definitive agreement to acquire the assets and operations of the derivatives market business of Knight Trading Group for $225 million in cash, James Forese, managing director and head of global equities at Citigroup, said of the deal, “The acquisition of Knight's options business is consistent with our efforts to expand our derivatives market making capabilities.” July 2004: CSFB ex-pat joins Citigroup Citigroup announced that Stephen Volk, a former employee of CSFB, will join Citigroup as vice chairman and senior client advisor. Prior to working for CSFB, Volk was a senior partner at Shearman & Sterling, a New York- based law firm, May 2004: Selling Samba Citigroup announced that it would sell its 20 percent stake in Samba Financial Group to the Public Investment Fund, a Saudi public entity. Citigroup said its after-tax gain on the sale would be $760 million. The bank also announced plans to acquire Principal Residential Mortgage, Inc., a mortgage service company based in Des Moines, Lowa. March 2004: Heads up Mexico Citigroup named Manuel Medina-Mora Chairman and CEO of Citigroup Latin America and Mexico, Mr. Medina-Mora retained his position as CEO of Banamex, a role he has held since 2001. Select Recent Transactions September 2006 + Co-managed with Deutsche Bank Riverbed Technology's $86 million IPO; Goldman Sachs lead-managed the offering, August 2006 + Lead-managed Marathon Acquisition Corp.’s $300 million IPO; Ladenburg, Thalmann and UBS Investment Bank co-managed the offering, Ino tim tte, messoge omar, ta Fron Joo Boovenanons” —— WAULT SG8885 31Citigroup Corporate & Investment Banking + Lead-managed with Credit Suisse and JPMorgan Qimonda AG's $546 million IPO. July 2006 + Co-managed with IPMorgan Allied World Assurance’s $299 million IPO; Goldman Sachs lead-managed the offering. * Co-managed with Goldman Sachs Valero GP Holdings’ $381 million IPO; Lehman Brothers lead-managed the offering. June 2006 + Advised Phelps Dodge on its $40 billion acquisition of mining company Inco. + Advised Ferrovial on its $19 billion acquisition of BAA. + Served as one of three mandated lead arrangers and fronting banks on a $800 million global trade financing structure for Mittal Steel. May 2006 + Lead-managed with Lehman Brothers Alliance Holdings GP’s $313 million IPO. + Co-managed with Goldman Sachs Burger King Holdings’ $425 million IPO; JPMorgan lead-managed the offering. + Lead-managed with Lehman Brothers Delek US Holdings’ $160 million IPo. + Lead-managed with Goldman Sachs and HSBC MasterCard Incorporated’s $2.4 billion IPO. + Lead-managed with Cowen & Co, Northstar Neuroscience’s $107 million IPO. + Lead-managed with Deutsche Bank and UBS Investment Bank Vonage Holdings’ $532 million IPO. April 2006 + Lead-managed with Goldman Sachs and JPMorgan Sealy Corporation’s $448 million IPO. 32 VAULT Senshi © 2006 Vault Inc.King Citigroup Corporate & Investment Banking February 2006 + Advised Endesa on its $66 bil ion sale to E.On. +Lead-managed with Goldman Sachs and UBS Investment Bank HealthSpring’s $367 million IPO. + Lead-managed with Lehman Brothers Magellan Midstream’s $539 million IPO. + Co-managed with Deutsche Bank Pacific Airport Group's $872 million IPO; Credit Suisse lead-managed the offering. + Lead-managed with JPMorgan and Lehman Brothers SMART Modular ‘Technologies’ $164 million IPO. + Lead-managed Temnium S.A.’s $496 million IPO; Deutsche Bank and JPMorgan co-managed the offering. + Co-managed with Friedman Billings Resource Capital’s $60 million 1PO; Credit Suisse lead-managed the offering. December 2005 + Lead-managed Boulder Specialty Brands’ $102 million IPO; Roth Capital co-managed the offering. + Lead-managed Cynosure’s $75 million IPO; UBS Investment Bank and Jefferies co-managed the offering. + Lead-managed with Lehman Brothers DCP Midstream Partners’ $194 million IPO. + Lead-managed with Credit Suisse Spansion Inc.’s $506 million IPO. November 2005 + Advised P&O on its $5.7 billion sale to Dubai Ports. + Lead-managed with Lehman Brothers Boardwalk Pipeline Partners’ $293 million IPO. + Lead-managed with Goldman Sachs and Morgan Stanley HIS Inc.'s $232 million IPO. Insert poer, mesrae cower, ta Faunce ne Scodaramow,” = WAULT 33Citigroup Corporate & Investment Banking October 2005 + Lead-managed with Bane of America Cogdell Spencer’s $99 million IPO. + Lead-managed with Credit Suisse Hercules Offshore’s $184 million IPO. o-managed with JP Morgan CBOT Holdings’ $173 million; Credit Suisse lead-managed the offering. September 2005 + Lead-managed with Lehman Brothers Ikanos Communications’ $77 million IPO. + Lead-managed Taleo Corporation's $94 million 1P¢ JPMorgan co-managed the offering. ; Merrill Lynch and + Lead-managed with Morgan Stanley WebMD Health Corp.’s $121 million IPO. + Lead-managed with Lehman Brothers and CIBC World Markets Williams Scotsman’s $245 million IPO. August 2005 *Co-managed with UBS Investment Bank Dresser Rand Group's $567 million IPO; Morgan Stanley lead-managed the offering + Lead-managed with Lehman Brothers Enterprise GP Holdings’ $353 million IPO, + Lead-managed Heartland Payment Systems’ $122 million IPO; Credit Suisse and Robert Baird co-managed the offering. + Lead-managed with Merrill Lynch Seaspan Corp.’s $599 million IPO. + Co-managed with RBC Capital Markets Williams Partners’ $108 million IPO; Lehman Brothers lead-managed the offering. July 2005 ed Consolidated Communications’ $204 million IPO; Credit Suisse First Boston lead managed the offering. + Lead managed Pike Electric Corp.'s $189 million IPO. VAULT Genet © 2006 Vault Inc.king Inert rome, rssgy Con ta Pane oOo a ore. VAULT Citigroup Corporate & Investment Banking + Lead managed, with Morgan Stanley, Quintana Maritime’s $192 million Po. June 2005 + Lead managed KKR Financial’s $800 million IPO. May 2005 + Co-managed Lazard’s $855 mi offering. n IPO; Goldman Sachs lead managed the * Lead managed, with Friedman Billings, DiamondRock Hospitality’s $275 million IPO. + Lead managed, with J.P. Morgan, SSA Global Technologies’ $99 million IPO. April 2005 + Lead managed Accuride’s $99 million IPO. + Lead managed National Atlantic Holdings’ $80 million IPO, March 2005 + Advised EQT and Goldman Sachs Capital Partners on their $5.2 billion acquisition of ISS. + Lead managed, with Morgan Stanley PanAmSat’s $900 million IPO. + Lead managed, with Credit Suisse First Boston, Fastclick’s $78 million IPO. February 2005 + Lead managed, with Credit Suisse First Boston, Huntsman’s $1.4 billion IPO. + Lead managed, with Morgan Stanley, Alpha Natural Resources’ $560 million IPO, + Lead managed, with Goldman Sachs, FTD Group's $200 million IPO. 35Citigroup Corporate & Investment Banking January 2005 * Lead managed, with Merrill Lynch, GFI Group’s $126 million IPO. December 2004 + Lead managed Conor Medsystems’ $78 million IPO. + Lead managed, with Morgan Stanley, Foundation Coal’s $520 million IPO, + Lead managed Great Wolf Resorts’ $238 million IPO. + Co-managed Las Vegas Sands* $690 million IPO; Goldman Sachs lead ‘managed the offering. November 2004 + Advised Cemex on its $4.1 billion acquisition of RMC iroup. * Co-managed China Netcom’s $1.14 billion IPO; China International lead managed the offering. + Co-managed Coinmach Service Corp.'s $250 million IPO; Merrill Lynch. lead managed the offering. + Lead managed, with Goldman Sachs, Nalco Holding’s $666 million IPO. October 2004 + Advised on the $80 million unification of Royal Dutch Petroleum and Shell Transport & Trading, + Lead managed, with Credit Suisse First Boston, Build-A-Bear Workshop’s $150 million IPO. + Lead managed, with Merrill Lynch, Calamos Asset Management’s $360 million IPO. + Lead managed, with Merrill Lynch, Digital Realty Trust's $240 million IPO. August 2004 + Lead managed American Campus’ $212 million IPO. + Lead managed Syneron Medical’s $60 million IPO, 36 VAULT Saint © 2006 Vault Inc.King Citigroup Corporate & Investment Banking July 2004 * Lead managed, with J.P, Morgan, Domino’s Pizza’s $340 mil ion IPO. + Lead managed, with Goldman Sachs, Freescale Semiconductor's $1.6 billion IPO. June 2004 + Co-managed CB Richard Ellis Group’s $456 million IPO; Credit Suisse First Boston lead managed the offering. + Lead managed, with Merrill Lynch, Homex Development's $160 million IPO. + Lead managed PowerDsine’s $69 million IPO. April/May 2004 + Advised Sanofi-Synthelabo on its $65.7 billion bid for Aventis S.A. + Advised Westfield Group of Australia on the merger of three of property trusts values at AS34 billion, global + Co-managed Alnylam Pharmaceuticals’ $30 million IPO; Bane of America lead managed the offering, February 2004 + Advised Cingular Wireless on its $47.1 billion acquisition of AT&T Wireless, Insert poer, mesrae cower, ta Faunce ne Scodaramow,” = WAULT 37Go FOR THE GoLp! Get Vauit GoLD MemBersHIP AND GET ACCESS TO ALL OF VAULT'S AWARD-WINNING FINANCE CAREER INFORMATION @ Employee surveys on 100s of top finance employers with insider info on: *® Company culture ¢ Salaries and compensation ¢ Hiring process and interviews * Business outlook ® Access to 100+ extended insider finance employer profiles Complete access to Vault's exclusive finance firm rankings, including quality of life rankings @ Insider salary info with Vault's Finance Salary Central @ Student and alumni surveys for 100s of top MBA programs and law schools @ Receive Vault's Finance Job Alerts of top jobs posted on the Vault Finance Job Board @ Access to complete Vault message board archives @ 15% off all Vault purchases, including Vault Guide and Finance Employer Profiles, Vault's Finance Interview Prep and Vault Resume Reviews (the WSJ's “top choice”) MOMENT RC} V 8 mi SAAN LU Lec Ce) RengOur Survey Says Enjoying success The culture at Citigroup tends to be “group-specific,” with certain departments “that are proud of being sweatshops” and others that maintain more of a “work hard/play hard” atmosphere. Overall, though, Citigroup is “very focused on not hiring bad people, so in general folks are more pleasant than the average banker.” Insiders say the bank is a place that “requires employees to roll up their sleeves and really solve problems.” The firm looks to attract “upbeat, competitive, hardworking, genuine people” who “are people before bankers.” “You don’t have to fit into a certain mold” to thrive at Citigroup, but you must enjoy working in a “results-oriented,” “aggressive” environment. “As long as you always know your numbers and stay on top of assignments,” the feeling at Citigroup is “relatively laid-back ‘The firm “goes to great lengths to ensure there is a social element within each group,” says one source, “The culture is collegial, friendly and you make a lot of friends and hang out during work.” One employee says it sometimes feels like “a frat house environment.” with a “focus on bonding and out of the office events.” In general, “People are not ‘stuck up,” as one would think for an investment bank.” One source says, “People are more social here than at many of the other bulge bracket banks.” Another agrees, “Compared with some of the people I have encountered in other banks, 1 feel that Citigroup folks are more humble and understanding of real life. I have been to the residences of my co-workers and I know their significant others as well. I have hung out not just after work, but on the weekends too.” Make no mistake, though—Citigroupers work hard: The culture is"fairly results driven,” and as such, sources say there is “not a lot of room for mistakes or laggards.” One source says, “The culture focuses around being the No. I bank on the street in every possible league table.” Citigroup can be “very bureaucratic due to the size,” and “extremely cost conscious.” Because it’s the biggest bank in the world, the bureaucracy can feel “immense and exhausting,” says one source. Another agrees, “The firm overall is very large so you run into a fair amount of bureaucracy.” but adds, “most groups/desks/deal teams are small enough that you have the ability to operate autonomously.” “Each individual group looks to protect their own and in that way it is great.” Plus, across all groups.there is a “drive to be the best in the business at everything we do.” As a result, the business “will put money into whatever projects will make us money. This is always the bottom line, in any business, but it’s repeated like a mantra here.” Citigroup “always pushes for ‘tar fom ott, mesnoe owe, Proce Joo Boo enomore —- WAULT SS258% 39Citigroup Corporate & Investment Banking Our Survey Save excellence” and is “intellectually-driven,” says another employee, but not at the expense of personalities. People “laugh and joke more offen than you would think,” says one source. Another adds that people are “humble and. team-oriented.” Citigroup is “very big of diversity,” so employees are “very respectful of each other's differences.” “The culture of the firm is very results-driven and dedicated towards improving everything, from eliminating unnecessary reports and creating ‘macros to make processes more efficient, to conducting firm-wide surveys.” ~Citigroup insider Opportunities abound ‘The firm creates a lot of opportunity for “internal mobility.” One insider says, “The culture is one of merit-based success. Citigroup has many VPs under thirty years old, covering some of the firms most important clients.” Indeed, “If you want to move around within the company, there are sufficient openings and opportunities in a wide variety of roles,” says another source. “Its the type of environment that is robust yet realistic enough that you can envision yourself staying for along time especially since career mobility is highly encouraged,” says another insider. “They would rather keep you in Citigroup somewhere than anywhere else.” And sources say it's a great place to settle in, especially given the opportunities in international business. “Citigroup is the type of place where there is constant interaction with people across the world,” says one insider. “T have communicated with people across the world including Mexico, Brazil, Kenya, Algeria, Romania and Hong Kong. The international platform, that Citigroup has built will be unrivaled by any other bank on the Street. No other bank will be able to gain that international presence overnight The global reach of the company is far unmatched. Employees of all levels are very often offered international experiences to work at foreign Citigroup branches, or 10 meet international clients.” ~Citigroup insider Doing time Like culture, hours at Citigroup can vary by division, “The groups are definitely not all equal in terms of workload,” says one source. But generally speaking, it’s safe to say that investment bankers at Citigroup put in a lot of time. “If there are things to get done, you will stay as late as you need to,” 40 = VAULT Sanskt © 2006 Vault Inc.King Citigroup Corporate & Investment Banking (Our Survey Says says one source, The overall sentiment, though, is that the hours are “in fine with most other investment banks.” “Like all hankers, Citigroup employees work very long hours” according to one insider. The hours are “definitely Jong,” says another, “but it should be expected if you're going to pursue opportunities in this industry.” Most bankers put in an average of “60 to 70” hours per week, and “frequently” or “often” work on weekends, as well as “late nights and early mornings.” Some say they work as many as “80 to 90” or “90 t0100” hours per week. Some employees “have had the flexibility to work from home on. weekends, which helps from a quality of life standpoint,” says one employee. Another says number of hours per week “depends on deal flow.” There also can be ebb and flow, year by year: “In my first two years, I consistently worked 80 to 90 hours per week and nearly every weekend for a significant amount of time,” says one insider. “For my third year, my hours have decreased significantly, but still range from about 65 to 75 per week. There is no pressure to bill because we do not bill our elients hourly.” You call these perks? Overall, employees are Citigroup do not feel appropriately compensated for the time they put in atthe firm. “My pay does not reflect the work I do and the value 1 bring to the firm,” says one souree. Another adds, “The compensation should be the market leader considering it is the market leader in its industry in terms of profits.” Some feel their pay is not “commensurate with the rest of Wall Street,” while others call the pay “standard.” Even those who say Citigroup is, “a great place to work” admit they “would like the pay to be higher.” In addition to base salary, some Citi employees “are eligible to invest in the firm’s private equity and altemative investment funds.” Outside investments must be done through Smith Barney—the firm “connects you with a Smith Bamey financial advisor at no extra cost, which is extremely advantageou say one source. Employees also have “opportunities for stock purchase and 401(k) plans.” And afier you reach VP level, “you get stock awards.” In addition, Citi offers a “subsidized rate, about $46 per month,” to its on-site gym at its Greenwich Street location in New York. Staffers are also given a discount at the New York Sports Club gym chain, ‘The company offers “on-site day care” and an “on-site cafeteria,” in addition to “traditional benefits” like “car service and meal allowances [of $20] after 8:30 p.m.” There’s also “an allowance within reason” when traveling or entertaining clients. Lately, according to insiders, “management has been cracking down on. expenses” One source says, “no joke” employees are not even granted Insdertm pote, messge cower, ta France oSovsaanow”” == WAULTSAS583 0 44Citigroup Corporate & Investment Banking (Our Survey Says “Blackberries or business cards.” In general, Citgroup is no frills when it comes, to extra perks. One disgruntled source complains, “There is gym membership available, but you must pay for it; there is a cafeteria on site, but the cost is very high for what we receive; there is car service available, but you have to be working after 9 p.m. in order to be compensated for it.” Another says the bank provides its employees with “all the usual stuff,” but notes that Citigroup tends to be “very cheap they don’t even match employees contributions like others investment banks.” Triberia Citigroupers sometimes refer to their office location in the TriBeCa neighborhood of New York City as “Triberia,” “because of the wind and also the fact that it gets quiet here.” ‘The location of the company’s main building, at 388 Greenwich Street, is “a little bit quieter than Midtown,” says one employee. Along the Hudson River, the building “has killer views,” says another, “especially at sunset.” Opinions vary on the inside of Citigroup's offices, with some employees alling them “standard for the industry.” and others saying they are not “as luxurious as other investment banks.” One insider goes so far as to call his New York office “pathetic™ and “embarrassing.” A colleague agrees, pointing, out that there are “broken chairs on the floor” and that “some traders buy their own chairs because firm chairs are in such bad condition.” Another insider describes the environment as “your standard cubicle farm.” But some consider the firm's offices “nicer and more comfortable than other investment banking offices | have seen.” Pethaps it depends on which floor you're on. “IBD, corporate banking and capital markets are luxurious with nice wooden trim on desks and French doors for offices,” says one source. On the trading floor, “space is limited, but still rather comfortable.” utifts at Citigroup lean toward formal. ‘The dress code is “business casual always, except when meeting with clients,” but “in general, bankers dress very well here,” says a source. “Certain bankers wear suits and ties every day. French cuffs and cufflinks are very common.” Suits are “not required,” but a lot of bankers wear them “most days” and ties “every day.” Some groups “require a tie at minimum.” One source agrees, the code is “supposed to be business casual, but informally, most people tend towards formal.” “If you're on a floor where many senior managers work, not wearing a tie frowned upon, except on Fridays.” Jeans are only permitted on “cert occasions.” VAULT Genet © 2006 Vault Inc.King Citigroup Corporate & Investment Banking (Our Survey Says Luck of the draw Citigroup managers’ treatment “varies greatly,” depending on who you're working with, “Some who know me personally treat me with great respect,” says one insider, “while others who don’t will just blow me off.” Another says, “On the whole, managers at Citigroup are kind and fair. Some managers may be more abrasive depending on whether they work in faster-paced, results- driven areas like Sales & Trading. More reporting or research-based positions have a slower pace where professionalism and cordialities replace short, concise, and sometime s abrupt answers and feedback from management.” Although most agree that managers treat subordinates “with respect,” many get average marks beyond that. “Some are completely oblivious of other people’s time,” says a contact. Another says, “Many of the senior people have a ‘more important than thou’ attitude.” One employee wishes managers gave “more constructive feedback” and “better explanation of projects.” Another says, “At times, I feel like superiors want employees to think that they are privileged to have a job here at Citigroup.” Some wish more managers showed employees that “they want people to be here and they'll do what it takes to keep people here.” One insider says, “In investment banking, people are not promoted to management positions because of their management skills and it shows.” Another agrees, “As you get more senior in the department, the amount of respect blurs somewhat. Some folks are in the positions that they are in for connections that they have, rather than for ability.” However, some insiders at Citigroup describe their relationships with managers as “very good to excellent.” A contact says some managers “will make an effort to avoid needless work for analysts and associates.” ‘There are some managers who “take a great interest in mentoring junior people and recognize this is an apprenticeship busines ys, “Once you have proved yourself as a productive employee, management is inclined to be supportive of your career.” Another insider says, “Everyone is very unique, motivated and willing to teach, Hubris is not pervasive; rather, our MDs through analysts operate as a team 10 facilitate the completion of deals and other assigned tasks.” One source says, “My managers are incredibly smart, take a real interest in the development of the analysts and expect analysts to become senior members of the group. They do not view analysts as two-year employees where there will be constant churn.” Another agrees, “I do not feel that 1 am ‘just an analyst.” My team asks about the types of projects on which I like (o work and includes me in those activities." ‘One source Inder poten, mesroe cones, ta Faarce eb eowdewsroe”” = WAULT GARRY = 43Citigroup Corporate & Investment Banking (Our Survey Says “Citigroup should actively show they want people to be here and they will do what it takes to keep people here There are way too many people jumping ship to go to another [firm].” ~-Citigroup insider “after working for my group for two years I am guaranteed to move to another group within my division. Managers embrace employees moving to new areas to learn, grow and develop their careers to new levels.” ~-Citigroup insider Best on the Street One place Citigroup employees are sure to get support is in the company’s training programs. “We have, without question, the most in-depth and comprehensive training program on the Street,” says an insider. “The firm’s commitment to training is beyond compare,” says another. New associates and analysts undergo a 10-week training program before starting the job, which one source calls “extremely intense.” Others call Citigroup's training “excellent noting that the firm offers “great accounting and finance training, as well as cash flow modeling and financial statement analysis.” And training does not stop at the 10-week program: “There’s not enough time to participate in all the training that’s offered,” says one source. “The firm’s commitment to training is beyond compare. Every month a new calendar of classes and continuing education is posted in our office..” One insider points out, “The training for the Corporate & Investment Bank's Finance group covers Accounting and Finance, but not much more, While these three weeks are a great learning experience the real training is done in the group, where you work very productively with co-workers and apply your business knowledge.” Most at the firm concur, however, that Citigroup offers, “without a doubt, the best training on Wall Street.” “The firm’ s commitment to training is beyond compare.” ~Citigroup insider Good marks Diversity at Citigroup is “taken very seriously.” The firm has a “dive council,” as well as dedicated committees for women, ethnic minorities, and gays and lesbians. It also “holds cocktail hours specifically for women,” As far as making an effort to recruit women goes, one source says Citigroup's commitment is “exceptional.” Another says, “I have as many women in my group as men.” At Citigroup, “women are treated as equals” and “there are 44 = VAULT SERsit © 2006 Vault Inc.King Citigroup Corporate & Investment Banking (Our Survey Says ‘many women in leadership positions. One source notes, “While some positions, tend to be filled more by men, it can be angued that women have not moved there due to the lack of training offered in colleges.” Most agree, “There is no sexual segregation at the firm.” One insider say, “Women are treated as equals at this, firm. There are many women in leadership roles here, and there are internal organizations devoted to assisting women to make the most of their careers.” About recruiting and promoting ethnic minorities, one contact says, “Citigroup makes conscience effort to be an employer of individuals from all over the globe. ‘The fact that Citigroup is in over 100 countries and makes a substantial effort to move employees in and out of these countries means it’s a promoter of diversity on a level that not many companies can match.” It’s a place that “consistently makes efforts to inerease diversity.” One insider says “ there is still room for improvement in terms of hiring and promoting people of color.” But overall, Citigroup is considered a “very diverse company.” One source says he has been “very impressed” by Citigroup's suppor for the gay and lesbian community. ‘The firm highlights Pride Month on its web site and corporate calendar. Insdertm poner, nessoe cones, ta Faarcs ib eowdewgroe” = WAULT GARRY 6 45Competition on the Street - and beyond - is heating up. With the finance job market tightening, you need to be your best. “We got the best revamp | “Thank you, thank you, thank Named the from Vault.com. Our ‘you! | would have never come up expert pronounced with these changes on my own!” “Top Choice” by the resume ‘perfect.'" | _ w8,, Associaze, Investment Banking, NY UN BSc MC The Wall Street Journal “Having an experienced pair of eyes looking at the resume made more of a difference than I thought.” CLs tse -e - R.T., Managing Director, SF Finance Resume Writing and “found the coaching s0 helpful Resume Reviews | made three appointments!” * Have your resume reviewed by a practicing ~ $.B,, Financial Planner, NY finance professional. * For resume writing, start with an e-mailed history and 1- to 2-hour phone discussion. Our experts will write a first draft, and deliver a final draft after feedback and discussion. ‘* For resume reviews, get an in-depth, detailed critique and rewrite within TWO BUSINESS DAYS. Finance Career Coaching Have a pressing finance career situation you need Vault's expert advice with? We've got experts who can help. * Trying to get into investment banking from. business school or other careers? * Switching from one finance sector to. another — for example, from commercial banking to investment banking? * Trying to figure out the cultural fit of the finance firm you should work for? For more information go to V. U LT www.vault.com/financeCitigroup Corporate & Investment Banking Getting Hired Hiring Process Citigroup knows what it wants: “the very best people.” And the firm spends an “intense amount of time and commitment” finding them. Interviewers “put as much emphasis on personality and fit as intellectual horsepower.” They mostly go after people from “core schools,” and even if you are a top student there, “itis difficult to get hired.” Relative to the firm’s size, it keeps its incoming class “small.” In fact, within investment banking, says one employee, “the summer associate class is one of the smaller classes on the Street.” Interviewers want people who are naturals at business etiquette, A contact says that “typically, it only takes one mistake” in this area “to knock a candidate out of the process.” Because “there are an high number of applicants and a lot interest in the firm, with only a relatively small number of openings, the selection process is difficult during analyst program hiring.” One insider says, your “chances are better if you are referred from the inside.” Another agrees, “Fifly percent of it comes down to who you know.” But here’s something to keep in mind: “The finance division tends to be a little les competitive than straight investment banking or sales and trading (for which the program is often mistaken, especially since other banks call their investment banking programs corporate finance),” says one inside source. Another adds, “The finance program dips into smaller schools to fill its growing capacity.” Generally speaking, Citigroup recruits from “the usual schools for bulge brackets,” including “Ivy League schools and other equivalent level universities.” One source says, “It is very difficult to get hired outside of this process.” It goes after public schools like “Virginia, North Carolina, Texas, Illinois, Michigan and California,” says one source, Another notes that the firm also interviews “select students from nontarget schools in New York.” Citigroup recruiters can be seen on such undergraduate campuses as “Penn, Harvard, Columbia, Rutgers, Johns Hopkins, New York University, Dartmouth, Comell and Georgetown.” One source says, “Citigroup is extremely selective when hiring undergraduates, despite its large size.” And the firm goes after graduate students from top MBA programs, with most associates coming out of “Columbia, NYU, Wharton, Duke, MIT, Harvard and Tuck.” Sources say: “If you are a top student at a ‘core’ recruiting school, it is difficult to get hired. If You are not at a ‘core’ school, it is nearly impossible without family connections.” ‘tar fom ott, mesnoe owe, Proce Joo Boo enomore —- WAULT SS258% a7Citigroup Corporate & Investment Banking Getting Hired “The firm only visits select schools and it is very difficult to get hired outside of this process” ~-Citigroup insider Making an impression Ifyou're able to score an interview, here’s how it typically goes: “First- round interviews are held on campus, usually with two people, and the second- rounds are held at the firm’s offices, usually with at least four different people.” The one on campus is considered a “screening interview,” designed “to determine if the candidate is a match for the Citigroup culture and may involve discussions on past experience and decisions made in both academic and professional settings.” Super Days, oF the on-site, second interview, usually involves “four or five interviews in a row.” One source says, “Second-round interviews will be with multiple groups, and each group will have several members involved in the interviewing.” Interviewers will be “from all levels,” ranging “from MDs to associates” and “vice presidents.” In some cases, candidates “will be invited back for a third and final interview.” For analysts, here’s the norm: “Two first round interviews on campus, where the candidate interviews with two people ata time. Ifa candidate makes it through to the final interview at ur offices, they will go through a typical super day with maybe five interviews in a row.” For associates, says one insider, “the interview process is similar in terms of rounds, but more activities are done on campus pre- interviews.” “Second-round and, in some cases, third-round interviews are more job- specific and will entail a series of interviews that determine the candidate’s ability to succeed at the open position,” says one source. “The process centered around a module to gauge different ability,” says one employee. Interviewers are trying to measure “personality, technical competence and ethics.” Questions tend to be “very behavioral in nature” with a great deal of focus on “past experience.” More specifically, “questions usually revolve around who you are as a person, why you want to work at Citigroup, what you have done in the past, and what qualities and skills you bring to the table.” Insiders say that generally, interview questions for analysts “range from corporate finance/accounting to leadership and communication skills,” while questions for associates “tend to be more quantitative.” All interview questions “span finance and fit,” say sources. “Job candidates can expect question to be behavioral and initially based off of their resume, 48 = VAULT Sisk © 2006 Vault Inc.King Citigroup Corporate & Investment Banking Getting Hired so positions or club memberships that they had little involvement in should not be included,” says one insider. Citigroup interviews “are not intense,” says one source, but do involve some “brain teasers, quantitative and financial knowledge.” A tip: “Each interviewer has a different style.” Although Citi’s interviews tend to be more “personality-focused,” some interviewers “take a strong analytical approach.” One employee says, “Questions can range from extremely technical to ‘What would you do first if I came to you with this problem? and ‘Walk me through your thought process.”” Overall, “the interviewing process is not a test of a person’s, memorization skills,” says one employee. Rather, “it challenges the person to be creative and think outside the box to answer questions, in addition to speaking about their own development via working in groups.” One insider says, “Candidates should ask questions that are both original and show that they have a real interest in Finance, Accounting, Economics, and most importantly the work that they might be doing if they were to be hired.” “Offers are decided on immediately following the interviews, and the candidates are usually called that night with the news,” says one source. Don't lose hope if you don’t hit it off with the group who interviewed you, says one insider. “If it's not a good fit with that specific group, it’s possible to get put back into the pool.” “Questions usually revolve around who you are a person, why you want to work at Citigroup, what you have done in the past and what qualities and skills you bring to the table.” Citigroup insider (second-year analyst, investment banking) Breaking in Most former interns call Citigroup's program the “easiest way” to get hired full time and a great way to “establish your network early on.” The firm “tends to hire many of its summer associates.” In fact, says one source, “we were told [the offer] was ours to lose.” Another agrees, saying that a full-time position following an internship is “almost guaranteed.” “As long as you have a good attitude, stay positive and don’t mess up the work, you'll get an offer.” Thase who don’t get full-time offers are the ones who “don’t have that ‘corporate fit, that is, are too aggressive, have too much of an attitude or are somewhat awkward,” says a contact. For analysts, “Citigroup likes to hire as many summer analysts as possible, unlike Goldman Sachs, which takes a ton of summer analysts and then only gives full-time offers to 20 percent of them.” Inde proer, mesroecowes, ta Faarce io bowd snare” = WAULT GARRY = 49Citigroup Corporate & Investment Banking Getting Hired Interns at Citi are treated “like real associates,” says one source, “They are involved in research, help out on live deals and also get to go on planned events, trips, etc.” Because Citi’s summer associate class is one of the smaller on the Street, “there is space in the full-time class for candidates who prove they are able to do the job - rather than artificially not giving offers at the end of the summer to deserving candidates because of a numbers issue.” One former intern “rotated on 10 different d A source says that “getting coffee and answering phones was definitely among the responsibilities on some desks, while on others, I was asked to help with projects.” Overall, says another former intern, “the main job for the summer was to lear as much about the different products as possible and get to know the people and the culture of the firm.” For summer recruiting, “there are numerous events on campus leading up to Bank Week in December,” says one insider, who has experience interviewing potential summer associates. “During Bank Week, we conduct informational, interviews for students; there are two subsequent, official interviews, and there was no particular theme (e.g., technical, fit) to either round. When I interview, I typically ask a technical question as well as a few designed to sus out how the candidate thinks about the job. I don’t want canned answers.” Some summer candidates have been asked “questions related to deals I'd listed on my resume.” Questions to Expect 1, Are you willing to work 100 hours a week? ‘This question requires respondents to answer, with as much eagemess and honesty as they can muster, yes. Hundred-hour workweeks are a brutal reality of the business, and the more convincing applicants are in saying that they can handle the workload, the better their chances of landing the opportunity to do so. Ifpossible, discuss situations where you've worked similar hours in the past. 2. Give me an example of your ability to work as part of a team. Because teamwork is an essential element of an investment bank have a story prepared describing how you worked as part of a team, 3. Why do you want to work at Citigroup? This question is meant to test your knowledge of the securities field, so the best way to address itis to first research the various investment-banking firms 50 VAULT Se2Kkh © 2006 Vault Inc.King Citigroup Corporate & Investment Banking Getting Hired and to pinpoint differences and specialties of each. Mentioning specific departments or aspects of company culture specific to a firm will also help. 4. How would you go about valuing a company whose stock you were considering buying? One answer is to discount the projected cash flows by using the company’s risk- adjusted discount rate. After projecting the first five or ten years, you add in a “Terminal Value,” which represents the present value ofall the future cash flows that are too far into the future to project. You can calculate the Terminal Value in one of two ways: (1) you take the earnings of the last year you projected, say year 10, and multiply it by some market multiple like 20 times earnings, and that’s the terminal value; or (2) you take the last year, say year 10, and assume some constant growth rate after that like 10 percent - the present value of this constant growth rate is the Terminal Value. You should also mention other methods of valuing a company, including looking at “comparables,” or how other similar companies were valued recently. 5, Walk me through the three financial statements. How do they flow together? Know your Accounting 101: Income statement, cash flow statement and balance sheet. 6. What are the three valuation methods? 1) Discounted eash flow analysis: See the answer to question four above. 2) Company comparable analysis, commonly referred to as “public trading comps”: By applying appropriate valuation multiples from a group of similar public companies, you can arrive at a valuation, For example, say you want to value a pharmaceutical company. First, you find several public pharmaceutical companies similar to the one you want to value, Second, you calculate various ratios (Such as stock price to sales or stock price to eamings) for each of the comparable companies based on their financial information. Third, take the average, or a range, of the ratios and apply them to the company you want to value. This will yield an estimated enterprise value. 3) Transaction multiples: Looking at recent merger and acquisitions in a given industry will provide you with a range of multiples, which can be used to place a value ona company. This is similar to analyzing public trading comps. For example, going back to the pharmaccutical company, you first find several completed M&A deals (with disclosed data) in the pharmaceutical industry. Based on the financial information of the deals, calculate ratios such as deal value to sales of the seller, or deal value to eamings of the seller. Average this data and apply it to your pharma company; this will give you an estimated value. (It’s important to note Insert poner, mesroge cones ta Parcs ob bcasngron,”” = WAULT GQRERY 51Citigroup Corporate & Investment Banking Getting Hired that each industry or sector uses valuation multiples that are most relevant to the way in which the investors and acquirers of that industry evaltate companies.) 7. Tell me what you think of industry X. Interviewers will ask you this question if you have prior industry experience, and you'll be expected to give a well-thought, thorough answer based on your knowledge of the company or sector. 8. What would you like to be doing 10 years from now? You don’t have to be working at Citigroup, but you want to be using the skills, that you would learn there. 9. What did you think of “X” story in today’s Wall Street Journal? Read the Journal for at least a week before your interview if you don’t already. 10. Which item on your resume is most important to you? Pick something here that your interviewer might not otherwise notice and that showcases your interpersonal skills. 11. What would your colleagues say is your worst qui ‘An easy one: make positive quality sound nega probably say that I'm too involved in my work.” e. “Oh, they would 12. What about this grade on your transcript? Be ready to talk about your college or graduate school courses, especially if there is a particular grade that will stand out or if you don’t have many finance or accounting courses. 13. Why are you going into the I-banking industry? Interviewers don’t want to hear “because it’s lucrative,” they want to hear “because it fits my goals.” A Citigroup I-banking associate offers some advice: “Our philosophy is more generalist, so make sure you have an underlying passion for the industry, not a specific group.”) 14, Can you pitch me a stock? This question will most likely only be asked to those interviewing for equity research positions. An insider who interviews candidates in equity research, says: “I want to hear someone who really knows a stock. Tell me the name of the company, the ticker, what price it closed at yesterday, its 52-week range, the 52 VAULT Sankhi © 2006 Vault Inc.King Citigroup Corporate & Investment Banking Getting Hired market cap, the industry sector the firm is in, your estimated 12-month target price and how you got to that price.” 15, Tell me a stock you don’t like and why? Same analysis as question number 14, 16. Why do you want go into X unit and not ¥ department (for example, why equity research versus sales and trading)? Different departments look for different qualities in candidates. An insider in equity research says he’s “looking for people who have a passion for the stock market and who have an interest in developing into junior industry experts. ‘They should have interests that are an inch wide and a mile deep, as opposed to interests that are a mile wide and an inch deep - which is what successful institutional salespeople have.” 17. Give me an example when you weren’t able to complete a project on ime. How did you handle that situation? How would you have done some things differently to better manage that project? 1uges your thought process and determines your ability to complete projects on time. 18, What about your previous experience as an analyst made you want to take on the role of an associate? Former I-banking analysts interviewing for associate positions should expect, this one, which attempts to single out those who want to enter the business for the wrong reasons, namely, for the big bucks. 19. “What would you do first if I came to you with this problem? Walk me through your thought process.” This question shows an interviewer how you tend to approach problems. Do you get flustered, or can you keep your cool and figure out a solution? 20. Is harder to push or pull an object up an inclined plane? You might get this question of you and your interviewer have engineering backgrounds, and is a simple question for someone with a background in physics, but interviewers want to see how you think through answers. Ino tim tte, messoge omar, ta Fron Joo Boovenanons” —— WAULT SG8885 53Citigroup Corporate & Investment Banking Getting Hired 21. Ifa company has a Bad Debt Expense, then where would it go in the financial statements? You might get this question if both you and your interviewer have an accounting background, And again, it’s an easy one for someone with a finance background, but the goal is to assess how a candidate thinks through answers. 22, Tell me about a book you've read recently. If you majored in liberal arts, you may have read a lot of books recently. But which ones you choose to mention give interviewers insight into whether you're answering strategically. “Interviews are not intense but more behavioral- and experienced-based than ‘most banks.” —Citigroup insider Questions to Ask 1, What do you think sets Citi sroup apart from its peers? Shows you have an interest in the firm specifically. Based on the response you get, you should inquire further with respect to differences. 2. How has your experience at Citigroup been? How What's your background? you get here? This gets interviewers talking about themselves (always a good idea) and, in doing so, you'll learn more about the firm’s culture. 3. What deals have you worked on? What are deal structures and deal teams like? How big is your group? Any question relating to the specific group to which you're applying is a good cone. Shows you're interested in the fine details and you know what you're getting into—that you have some understanding of how the deal process works. Ifyou know enough to ask about very specifi transaction details, go right ahead 4. What exposure to senior management and to clients have you had? What exposure will I have? This question shows that you want to learn as much as possible, and the answer shows how a certain group works. 54 VAULT Sa8khi 2006 Vault Inc.King Citigroup Corporate & Investment Banking Getting Hired 5. How has the recent hire of John Doe, new head of X unit, worked out? Again, another specific question, which employers like to field more so than general inquiries. 6. What percentage of deals has group X been the lead manager on in the past year? ‘The answer shows how well the group has performed and how much deal flow will exist going forward. 7. What does a typical day look like for an analyst (or associate)? This could give you an idea of how many hours you'll be working, how much senior banking contact you'll get, and how much financial modeling versus copying, pitch-book work and other administrative assignments you'll be doing. 8, What kind of trai ing will I receive at Citigroup? ‘The firm is extremely proud of its training programs for new employees, which it calls “one of Wall Street’s largest, most active training and development departments.” 9. What do you do? Candidates should definitely find out specifically what their interviewer does. Not just their department, but what they specifically work on. The interviewers tend to be more senior people so chances are they will like talking about what they do. Also, as the interviewer discuss what he does, the candidate should engage in that conversation and try to pick out points to make about what the interviewer said, as well as try to ask how they handle a certain problem in whatever function they serve within the bank. Also ask why the interviewer works in his respective department as opposed to other functions at their company. 10. Is there anything you did not understand about what I said? This gives the candidate an opportunity to expand, leaving the interviewer with a full understanding of what the candidate has to offer. Insert poner, mesroge cones ta Parcs ob bcasngron,”” = WAULT GQRERY 55Citigroup Corporate & Investment Banking Getting Hired “When I was being interviewed, 1 incorporated what I knew about corporate accounting, policy (which wasn't that much) and current events affecting the markets. Doing so made sitting with the interviewer feel more like a fluid conversation than an interview; which I think is something every interviewee should shoot for” Citigroup insider VAULT Genet © 2006 Vault Inc.King Citigroup Corporate & Investment Banking On the Job Job Descriptions Associate, Investment Banking A position generally held by business school graduates, an investment banking associate works on capital raising and mergers and acquisitions projects. Associates are assigned to specific groups shorily after they accept an offer. Daily activities include: + Preparing exhibits for presentations to clients, including industry overviews + Preparing financing case studies + Attending presentations of financing recommendations at client’s offices + Writing sales memorandum for distribution to Salomon sales force in connection with stock or bond offering + Assigning exhibits and analysis to analyst on deal team + Preparing common stock comparisons, merger runs, and LBO analyses + Assembling and editing pitch books Analyst, Investment Banking Undergrads hired at Citigroup normally come in as analysts. Analysts are assigned to one investment banking group, based on a combination of personal preferences and business needs. Groups are divided into industry coverage groups and product coverage groups. All groups are comprised of investment banking professionals ranging from analysts to managi directors. Each industry group is comprised of advisory teams (from analyst to managing director) within the investment bank that focus on providing advice to clients in their respective industries. Product coverage bankers are product specific experts (M&A, financial strategies, ete.), who work in tandem with the industry coverage teams, to provide the best solutions and service to the clients of Citigroup. Analysts find themselves working on valuation analysis, modeling, company and industry research, presentation preparation and administration. ‘cr potir messin vowan, ta Frm ne Gondamae” = WAULT GISR5RY 57Citigroup Corporate & Investment Banking (On the Job Trader, Sales and Trading ‘Traders are responsible for handling the firm’s stock, bond and derivatives, positions and for speculating in securities. Armed with multiple computer sereens providing data from a variety of online financial information sources, such as Dow Jones Markets, Bloomberg and Reuters, traders regularly sean breaking news to keep abreast of every latest development that could affect, the market, The trader quickly decides if the latest news or economic number will affect the market positively or adversely-and acts accordingly. Associates at Citigroup hired as traders start with a six-month training program - nine weeks of classroom training and several months of rotations through various trading desks. The firm also sponsors a weeklong course to prepare associates for the Series 7 Examination. Daily activities include: + Reviewing newswires for breaking news and the release of economic data + Presenting daily market summaries at Citigroup's morning meetings + Providing price indications (ie., bid and ask prices) on equity and fixed income instruments to Citigroup’s sales force + Executing buy and sell orders for Citigroup’s institutional clients on major exchanges + Providing a daily rundown of market acti research analysts ity and psychology to Citigroup's Summer Associate, and Trading Investment Banking/Sales Citigroup investment banking summer associates are generally asked to perform the work required of a first-year associate, ‘The firm hires about 20 to 25 MBA summer associates in New York, Chicago, London, Los Angeles, San Francisco and Toronto. As they gain more experience, investment banking summer associates are asked to assist more senior bankers prepare pitches to potential clients to secure a merger advisory engagement or a stock or bond issuance. Much of the summer associate's job consists of arduous work involving extensive quantitative analysis. For example, a summer associate might be asked to analyze the financial statements of two companies that are considering a merger and to construct a model that simulates what the two companies would look like if combined. Summer associates in investment banking often work in teams with analysts and full- time associates on client engagements. The summer in the sales and trading department involves two-week rotations among a variety of trading desks, 58 VAULT SeiKkt © 2006 Vault Inc.King Citigroup Corporate & Investment Banking (On the Job with evaluations after each rotation, All of Citigroup’s summer associates, enjoy a weekly breakfast series with top management from the firm’s various departments, such as public finance and research. Associates are expected to work 12 weeks, A Day in the Life Financial Analyst, Investment Banking 8:00 a.m. Arrive at work with coffe and a granola bar. The first thing I do is start running the reports I°ll be using for the day. These reports come from various front- and back-office systems, containing data as of the end of the prior business day. 8:30 a.m, While reports are running I answer all important voicemails and e- ‘mails that arrived from finance management or clients in Latin America. We havea lot of interaction with the trading desk, and operations and technology. 9:00 a.m, Once reports are saved, downloaded and exported, I begin performing front to back reconciliations. Doing this ensures that the information contained in our reporting systems (for balance sheet and ineome statement) are accurate and matching the back office systems. I am also examining the reasonability of our P&L and mark-to-market, and making sure that settlements on all of our deals are correct. Products traded and analyzed include swaps (single and cross-curreney), cap and floor options, foreign exchange forwards, and a wide variety of structured deal. 12:00 p.m. After all of the problems for the day have been identified via the reconciliations, I begin to solve the problems for the day. Most of the time an issue can be identified, assessed, and then solved. Sometimes issues can drag on for a month or so, but how long they are outstanding depends on their materiality. A million dollar issue takes precedence over a few thousand dollars! 1:00 p.m. In my group we all go out for lunch together to a local deli or restaurant, About 99 percent of the time we bring it back to our desks, Here wwe can chat with colleagues in other groups, managers, friends, etc. Getting outside and walking to the lunch spot is a point in the day that everyone looks forward to! Once back at my desk I'll check up on news online while I eat, 1:30 pam. I continue resolving issues with mark-to-market, settlements, P&L and cash reconcilement. Insert poner, mesroge cones ta Parcs ob bcasngron,”” = WAULT GQRERY 59Citigroup Corporate & Investment Banking (On the Job 5:00 p.m. Once all products have been reconciled between the front and back office, and everyone is generally in agreement about the numbers for the day, we send out the P&L to senior management. This includes executives in finance, sales and trading, the heads of the business, traders, market risk management, credit risk and more. pam. Price adjustments to deals with incorrect mark-to-market must be input in the system. Entries to various subledgers and the general ledger must, be input at this point, too. At the end of each day, the spreadsheets we've been working on all day must tie to the general ledger (net of all the entries, for the day) 6 working, p.m. Order dinner (on the company’s tab) and eat it at my desk while 7:00 p.m. Fire drill! The business heads are questioning the make-up of our figures. Answering them entails researching in various systems and subledgers, time and the cooperation of several members in the group. 8:00 p.m. Another fire drill! Our clients in Latin America are wondering about the figures being reported to them, as well. At this point we need to triple-check the accuracy of our P&L and provide a break down of the deals and structures making up their figure. 10:00 p.m. Make a to-do list for the following business day. Because of the time difference, it’s likely I'll have e-mails from clients in Latin America with ‘more questions. Answering their e-mails and voicemails while working on taking care of items on the to-do list helps ensure that nothing is missed. 10:30 p.m, Take a car ride home-also on the company’s tab. Financial Analyst, Finance Di Department) in (CFO's 8:30 a.m. Arrive at the office, log-on to computer, check/respond to e-mails, I've received while en route that I didn’t already see on my BlackBerry (usually from folks in Asia and/or Europe). 9:00 a.m. Check the Bloomberg to view main news of the day as well as take a daily snapshot (through Yieldbook) of the investment portfolio we manage for the business, 9:30 a.m. Check with co-workers about outstanding projects they’re working VAULT Genet © 2006 Vault Inc.King Citigroup Corporate & Investment Banking (On the Job 10:00 a.m, My boss usually comes by to talk about the issue of the day, like a new trade finance product in Burope that needs a finding, strategy, or to review the retums on our business’s balance sheet by product by region. (The issue of the day also can be a current project or a new issue that has come up in senior level morning calls.) 11:00 a.m. Continue to work on th in other departments from whom I sti ue of the day and follow up with those need financial data, 12:00 p.m. Go to lunch with fellow co-workers on my team in the cafeteria. 12:45 p.m. Head back to the office with teammates and finish what | was doing just before lunch. 2:00 pam, Team outstanding issues. 's together to grab coffee/tea in the pantry and talk about 2:05 p.m. Prepare for afternoon/evening meeting with boss. I'll need to update him on the analysis on our current projects, and show him the results, on a longer-term project. 4:00 p.m. Meet with boss to provide analysis for current issues of the day. 5:30 p.m. Continue working on the long-term projects or resolve any follow- ups to the issues of the day. 7:00 p.m. While continuing to work on outstanding projects, order dinner with co-workers. 8:00 p.m. Review and make a list of what you need to do tomorrow. 8:30 pam. Go home. Associate, Investment Banking 8:00 a.m. Read The Wall Street Journal on the subway. Check e-mails on BlackBerry. 9:00 a.m, Arrive at office. Pick up work left the night before at word processing. Prioritize ongoing projects for the day based on deadlines and schedule. (“I’m probably working on a handful of deals at once.”) 9:15 a.m, Read news online (“focusing on client news"), Return emails and phone calls 9:30 a.m, Review the work performed overnight by analysts; review market activity. Insert poner, mesroge cones ta Parcs ob bcasngron,”” = WAULT GQRERY 61Citigroup Corporate & Investment Banking (On the Job 10:00 a.m, Meet with various deal teams, which usually consist of an analyst, an associate, a VP and an MD. Talk with clients and people from other departments such as capital markets and legal that are also working on your deals. (“You want to talk with clients and the officers involved on your deals during the day-when they're around. I save the non-interactive stuff like model building for the night.” “I pretty much meet with my deal teams every hour during the day.”) 12:00 p.m. Eat lunch at desk, cafeteria or out of the office. (“I often go out to lunch with people from my training program; we stay pretty tight, “Tribeca is a great area to go out {0 lunch. Sometimes, though, I'll go down to the feteria—it all depends on the weather—but there, you see the same faces. It’s good to get out.”) 1:00 p.m, Meet with deal teams. ‘Talk with clients and deal support 4:00 p.m. Begin to receive assignments (such as pitch books and financial modeling) for the rest of day (and night). 5:00 p.m. Work on pitch books and models. 7: 00 p.m. Finish receiving assignments for the rest of the day. Determine how late you'll be staying. (“Some people go to the gym if they're going be there late.”) 8:00 p.m. Order dinner. 8:30 p.m. Eat dinner at desk. Continue to work on piteh books and modeling. Answer analysts’ questions and check their work. 9:30 p.m. Pick up any work from word processing and route it to vice president's desk for review in the morning. 10:00 p.m. Call car service and head home (“It's acceptable to leave at 10, but 1 am is more realistic, especially if you're working on any live deals.” “There are times when you leave at 7:30 [p.m.].") Associate, Equity Research 7:00 a.m. Get on the subway and read The Wall Street Journal. (“I focus on news that’s relevant to the companies I cover.”) 8:00 a.m. Arrive at the office. Look at Reuters to see if there’s any breaking news on the companies that you cover. (“Once an hour, all day, I’m checking Reuters for breaking news on my companies.” “If there’s negative news, VAULT Genet © 2006 Vault Inc.King Citigroup Corporate & Investment Banking (On the Job institutional investor calls start pouring in regarding the effeet of the news on the stock") 8:15 a.m. Call the investor relations at the company for which news came out in order to get their take on it. If there’s no breaking news, begin work oon ongoing projects such as an industry research report. (I'll usually have a few piles of projects on my desk.”) 8:45 a.m. Meet with equity research team, which consists of one senior analyst, “who might be on the road,” one MBA associate, one undergraduate research assistant, and one administrative assistant. (With respect to effects of negative news, the team must “form a unified opinion on a situation. Once we're all on the same page, we start to handle client calls.”) 9:15 a.m, Write a “global alert” on the news to be sent to sales force worldwide. 9:45 a.m. Handle client calls (“their inquiries into the news”). 11:30 a.m, Meet with team regarding ongoing projects. 12:00 p.m. Go out to lunch or eat at the cafeteria with co-workers. 12:30 p.m, Retum phone calls. Focus on ongoing projects. 1:30 p.m. Afiernoon team meeting. (“Checking in with the boss.” “It’s important that our team communicates effectively.”) 2:00 p.m. Downtime. Work on ongoing projects. 4:00 pam, Meet with a company that wants us to cover it 6:00 p.m, Order dinner. 6:30 p.m. Dinner arrives. Eat, continue to work on ongoing projects and prepare for tomorrow. 8:00 p.m. Head home Analyst, Structured Finance/Capital Markets 9:00 a.m. Arrive at work. Stand in line to get coffee at the Ritazza Coffee Bar. Wait another five minutes at the elevator banks because the double-shaft elevators are usually serving other decks. 9:15 a.m, Global pipeline call with London, Hong Kong, Sydney and the New York offices to review the status of all current deals. Insert poner, mesroge cones ta Parcs ob bcasngron,”” = WAULT GQRERY 63Citigroup Corporate & Investment Banking (On the Job 9:30 a.m, Talk with director and managing directors about who is winning in our season-long NFL. football pool 9:45 a.m. Start on new pitchbook for a new construction financing. Call analysts from the other groups to see when I will receive their group's pages for the book. 11:00 a.m. Conference call with a client in Germany to discuss and review our group's response to the RFP we responded to last week. 11:30 a.m. After we hang up with the client, the relationship banker immediately gives us a call to discuss next steps. 12:00 a.m. Lunch with my director, We walk across the street to get a sandwich from our favorite deli to bring back to our desks. We notice that there is a big crowd outside because yet another movie is being filmed in Tribeca. We hear someone say that it's a new Will Smith science fiction movie. 12:30 pam. Catching up on e-mails while I eat my sandwich. My director's comments on the pitehbook are waiting for me on my chair. Minor edits and formatting changes. 1:00 p.m. Relationship banker calls and wants to see if we ean conference in the treasurer for another mandate we're trying to win, The treasurer is actually at his desk. We discuss the latest opportunity and learn that there may be @ chance to inerease the transaction size by another $100 million, 2:00 p.m. Run upstairs to the print shop to pick up bound books and term. sheets for a 3 p.m. meeting with a client at our attorney's offices in Midtown, 2:30 p.m. Hop in a black car that's waiting for us outside the enormous red umbrella, Head over to Midtown law offices. 3:00 p.m. Meeting with client and lawyers in a fancy conference room. Cookies and coffee. The attorneys on both sides negotiate some of the comments and black-lined items on the term sheet. The process goes smoothly. 5:00 p.m. Arrive back at the office. | dial in to a Cornell University resume review session for the upcoming analyst training class. 5:30 p.m. The weather is too nice outside. Instead of going upstairs to the gym, I decided to run on the West Side highway to Chelsea Piers and back. VAULT Genet © 2006 Vault Inc.King Citigroup Corporate & Investment Banking (On the Job 6:30 p.m. Afier a quick shower, I head back to my desk. Check voicemai and e-mails. I finally receive the missing sections for the pitchbook I was working on earlier. 7:00 p.m. Order food from Seamless Web and eat at my desk. 8:00 p.m. Review and update model for a wind energy investment transaction. Finalize an internal investment approval memo that needs to be sent out tomorrow morning on the deal 9:18 p.m. Catch a black car home. Review unanswered e-mails on my BlackBerry. Career Path Undergraduates After a five-week period of classroom training, analysts in investment banking enter the firm working with a particular “group” that specializes in a specific industry or sector, like M&A or energy. Explains one insider about the training program: “You have an introduction to all the news information sources that you will be using as an analyst, a session on how to work on a computer, how to build financial models - they give you a few examples and you have to build a few.” That contact says the program is no cakewalk: “Our training wasn’t relaxed. It was almost as bad as regular work. Training can get pretty brutal—you're staying up late to finish stuff.” After the training period, the analysts submit group choices. “You give five choices. I'd say 99 percent get one of their top three. I've never met a person who didn’t get one of their top five choices.” Unlike some other firms, Citigroup will not pay for business school for outstanding I-banking analysts. As for advancement past the normal two- year track, says one insider, “If you want to do a third-year slot, you have to submit a package with your resume and four other groups that you want to join—and you have to switch groups. The group gets to interview you first.” To move from a third-year to associate spot, “you not only have to apply but you have to write an essay.” Says one insider, “Vou can advance from analyst to associate. 1 think it’s very rare, though. It depends on your performance, or your perceived performance, because you can be an under performer and still get good reviews. A lot of it really depends on how much they need you, where they really need a glut of associates, and if you're really good.” Says Insert poner, mesroge cones ta Parcs ob bcasngron,”” = WAULT GQRERY 65Citigroup Corporate & Investment Banking (On the Job another source, “It’s still possible to advance without an MBA. You ean do it, but it’s much less possible, Now you're reporting to four different people, most of whom you don’t even work for. You're on the same level as some kid that walked into the door with an MBA.” Analysts in the firm’s sales and trading department also have a two-year program, The track includes three to four weeks training, and a widely ranging generalist program: they can move from fixed income to equities, or from sales to trading. The opportunity to advance to associate in sales and trading is much greater than in investment banking, Analysts in public finance enter a two-year program similar to the investment banking analyst track. ‘They begin with a nine-week training program that groups them with public finance associates. MBAs MBAs begin their lives at Citigroup with a six-week classroom-based training program that brings together associates from investment banking, sales and trading, and research. The length of further training varies by department-investment banking associates receive four additional weeks of training; sales and trading associates have a total of six months of training Both I-banking and sales and trading associates also can complete formal rotations among groups and desks (the banking rotations are optional). As for promotion, insiders say the firm requires associates to complete four and a half years before being considered for a vice president position. Associates typically work on deal teams headed by managing directors and consisting of two to six professionals. Those who successfully work for another three years are generally rewarded with a directorship. Then, depending on each person’s skill, Citigroup may decide to promote the person toa managing director position after several more years. VAULT Genet © 2006 Vault Inc.Final Analysis Despite facing a number of regulatory probes and frequent turnover, Citigroup Corporate and Investment Banking is still one of the top investment banks in the world, In 2008, it ranked No. 1 in 14 out of the 25 league table categories, and for the first time, it became the No. 1 global underwriter of equity and equity-linked securities, advising on twice the number of deals as its closest competitor, Goldman Sachs. In 2005 M&A, Citigroup advanced three spots in worldwide and U.S. completed deals, to No. 2 in both categories. Insiders describe the bank as a hardworking but very friendly place, focused on bonding and forming friendships among, colleagues. Citigroup’s pay packages and perks leave something to be desired, but most who gain a spot within this highly competitive firm enjoy unmatched brand recognition and best-of-the-Street training. ‘tar fom ott, mesnoe owe, Proce Joo Boo enomore —- WAULT SS258% 67Get the BUZZ on Top Schools Read what STUDENTS and ALUMNI have to say about: Admissions Academics Career Opportunities Quality of Life Social Life Surveys on thousands of top programs College * MBA @ Law School © Grad School VAULT Go to www.vault.comRecommended Reading Visit Citigroup’s web page, located at www.citigroupgeib.com, for the latest information about the company’s ventures, awards, recent projects and corporate structure. For a close look at how Citigroup became the giant firm it is today, and how its former leader and legendary banker Sandy Weill delivered an amazing 2,600 percent return to investors during his reign, check out The Rea! Deal: My Life in Business and Philanthropy, written by Sandy Weill and Judah S. Kraushaar, published in October 2006 by Warner Business Books. We also recommend the following recent articles: “Citigroup Revamps Hedge Fund, Naming Barr as Chief Executive,” The Wall Street Journal, September 9, 2006 “Citigroup Payouts to Chiefs Itk Holders,” The Wall Street Journal, August 25, 2006 “Lehman Raids Citigroup for West Coast Tech Team,” Investment Dealers’ Digest, August 15, 2006 “Rubin, Citigroup Set Travel Pact,” The Wall Street Journal, August 12, 2006 “Citigroup Chief Holds to Growth Amid Cries for Cuts,” The Wall Sireet Journal, July 26, 2006 iti Loses Power Banker to Boutique Evercore,” Investment Dealers’ Digest, June 23, 2006 “Weill Earmarks Billions for Charities,” /avestment Dealers’ Digest, June 20, 2006 “Street star: Citigroup CFO, Sallie Krawcheck,” Fortune, May 15, 2006 “Citigroup May Move 1,500 to Jersey Citi,” The New York Sun, May 6, 2006 “Citi’s Prince; JPMorgan’s Dimon Struggle to Meet Weill’s Record,” Bloomberg, April 13, 2006 “Citigroup Clears U.S. Regulatory Hurdle; Free to Pursue Large Deals,” Investment Dealers" Digest, April 4, 2006 “New Scandal for Citigroup,” TheStreet.com, March 31, 2006 igroup Names Bottega CDO,” Wall Street & Technology, March 16, 2006 ‘tar fom ott, mesnoe owe, Proce Joo Boo enomore —- WAULT SS258% 69Citigroup Corporate & Investment Banking (On the Job “Deutsche Bank Snags Media Banker from Citigroup,” Investment Dealers” Digest, February 28, 2006 “S.E.C. Accuses Former Citigroup Executives of Securities Fraud,” The New York Times, August 9, 2005 “Citi: Suddenly Thin at the Top,” Business Week, July 20, 2005 “Citi: Not Too Pretty,” Fortune, July 19, 2005 “Sale Talks For Citigroup Asset Unit.” The New York Times, June 2, 2005 “The 2005 Fortune $00,” Fos ine, April 20, 2005, “Citi: A Whole New Playbook,” BusinessWeek, February 14, 2005 “For Citi, This Prince is a Charm,” BusinessWeek, January 28, 2005 “Ie’s Cleanup Time at Citi,” The New York Times, November 7, 2004 “Can Chuck Prince Clean Up Citi?” BusinessWeek, October 4, 2004 “Citigroup’s Curious Exec Change,” BusinessWeek, September 28, 2004 “What's Citi’s Deal?” Fortune, June 28, 2004 “Citigroup Agrees to a Settlement Over WorldCom,” The New York Times, May 11, 2004 VAULT Genet © 2006 Vault Inc.Go FOR THE GoLp! Get Vauit GoLD MemBersHIP AND GET ACCESS TO ALL OF VAULT'S AWARD-WINNING FINANCE CAREER INFORMATION @ Employee surveys on 100s of top finance employers with insider info on: *® Company culture ¢ Salaries and compensation ¢ Hiring process and interviews * Business outlook ® Access to 100+ extended insider finance employer profiles Complete access to Vault's exclusive finance firm rankings, including quality of life rankings @ Insider salary info with Vault's Finance Salary Central @ Student and alumni surveys for 100s of top MBA programs and law schools @ Receive Vault's Finance Job Alerts of top jobs posted on the Vault Finance Job Board @ Access to complete Vault message board archives @ 15% off all Vault purchases, including Vault Guide and Finance Employer Profiles, Vault's Finance Interview Prep and Vault Resume Reviews (the WSJ's “top choice”) MOMENT RC} V 8 mi SAAN LU Lec Ce) RengRUM ORL RUM m LST Ea) CUNY TSCM tL) VAULT EMPLOYER PROFILE: CITIGROUP CORPORATE & INVESTMENT BANKING Vault Employer Profiles include: Introduction: An overview of the company and basic stats The Scoop: The company’s history, current business, major products, and rankings in the industry Vault Newswire: Easy-to-digest summaries of recent news about the company Our Survey Says: Employees speak their minds on company culture, job satisfaction, pay, benefits, diversity issues and more Getting Hired: The company’s hiring process, interview questions to expect and application contacts On the Job: Typical days in the life, job descriptions, career paths Final Analysis: The final word on the pros and cons of working for the company AU seer) Cole] ee CA oes er Ces eG Recital, PSA ee os THE VAULT EDITORIAL PROCESS Exclusive Surveys: Vault annually surveys tens of thousands of employees at leading employers. One-on-One Interviews: For each employer, we conduct in-depth interviews of current and former employees. VAULT FINANCE CAREER CHANNEL * Insider firm profiles + Finance interview preparation * The Vault Finance Job Board * Advice on career-switching, job-hunting and more + Employee message boards * Finance resume and cover letter reviews WWW.VAULT.COM/FINANCE Oren ee cuca Rt eee e iy CORR enc ae Re RRC Oa RN Rea gee ee Ue ne ome I ROT A) Hussam Hamadeh, Samer Hamadeh and Mark Oldman. Finance/Career/Reference Peay VAULT Se eco