Citi promotes three to MD ranks in changed banking era as executive shuffle continues across rivals

CIti’s promotions come amid sweeping changes across Australian investment banks. Picture: AFP

Investment bank Citi has promoted three of its executives to managing director positions, catapulting them into the big time when it comes to the world of investment banking.

Elizabeth McAlpine, chief risk officer for Australia and New Zealand; Ryan Ellis, head of rates and currencies sales; and Troy Fraser, head of FX sales; have all been elevated to the coveted MD rank as part of Citi’s annual promotions round.

But while the title remains one of the most prestigious in finance, the reality of what it means – both financially and hierarchically – has evolved considerably from investment banking’s golden era.

Base salaries for Australian managing directors now sit around $400,000 at some banks, down from closer to $US400,000 ($604,000) in the past.

And banking sources say the role itself has become more nuanced, with some banks introducing “junior managing director” or “MD-lite” appointments where the title is granted without the traditional senior-level compensation that once came automatically with the designation.

In some cases, high-performing vice-presidents can earn more than newly minted managing directors because there are no MD titles available to allocate, with all slots taken.

The reality is that base salaries have been compressed, with more emphasis placed on bonuses to motivate individuals – and those bonuses can match or exceed the base salary.

The shift reflects a broader recalibration across investment banking, which has become less lucrative than it used to be, with executives paid less across the board.

For many Wall Street banks, the investment banking division now functions more as a shop front to sell customers other products rather than the profit engine it once was.

Year-end bonuses across much of Wall Street are expected to be up from 2024, largely because big banks are raking in bigger profits from their trading and investment banking divisions.

Citi’s promotions come after Goldman Sachs last month rewarded six of its Australian investment employees with managing director titles as part of a move globally to promote top staff.

The promotions also come amid sweeping changes among the top ranks of Australian investment banking teams of late.

Macquarie Capital’s head of the financial institutions group for Australia and New Zealand, Laura Golis, has jumped ship to become investment banking co-head at Jefferies, while its co-head of equity capital markets Georgina Johnson will become the head of ECM across Australia and New Zealand for Goldman Sachs.

Meanwhile, ex-UBS equities operative and Jarden chairman Robbie Vanderzeil will become a consultant to Goldman Sachs in the area of ECM.

It comes after the ANZ head for Goldman Sachs ECM, Aaron Lamshed, departed abruptly a year ago.