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BACKGROUND NEWS

Citigroup is revamping its compensation system – raising salaries and reducing bonuses for top bankers – in an effort to persuade its best performers to stay with the troubled bank.

People close to the situation said Citi began informing staff on Tuesday of the new pay structure, which had been in the works for the past few months, telling some senior bankers their salaries could rise by up to 50 per cent this year.

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