The WetFeet Insider Guide to Citigroup's Corporate & Investment Bank

Citigroup is the largest financial services firm in the world and has single handedly transformed the financial services industry by introducing a new platform on which to do business—one that offers a full range of financial products to all levels of customers, from consumers to corporate institutions. The firm’s size and diversity offer job seekers a wide range of opportunities—many of them high-ranking—amid a relaxed and individualistic corporate culture. For bankers who aren’t afraid to work hard, who want to blaze their own trails, and learn as they go, Citigroup’s Corporate & Investment Bank is a great place to be.

Turn to this WetFeet Insider Guide to learn • How Citigroup maintains its monolithic position at the top of the financial services world. • How Citigroup’s Corporate & Investment Bank has quickly adjusted to recent changes in the industry.

Citigroup’s Corporate & Investment Bank

Careers/Job Search

Citigroup’s Corporate & Investment Bank

• How Citigroup differentiates itself from its competitors. • How the Corporate & Investment Bank is organized, from top to bottom. • About a typical day in the life for Citigroup investment banking, capital markets, and public finance associates. • What employees love most and like least about the firm. • How Citigroup’s recruiting process works. • What tips insiders offer to help you score big points with your interviewer.

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2004 Edition

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Insider Guide

Citigroup’s Corporate & Investment Bank 2004 Edition

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Table of Contents Citigroup’s Corporate & Investment Bank at a Glance. . . . . . . . . . 1 The Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Bottom Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Industry Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 More Industry Rankings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Organization of the Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

On the Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Investment Banking Associate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Capital Markets Associate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Public Finance Associate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 E-Business Associate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

The Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Lifestyle and Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Workplace Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Vacations and Other Perks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Career Path. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Insider Scoop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Getting Hired. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 The Recruiting Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Interviewing Tips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Grilling Your Interviewer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

For Your Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Recommended Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 The Numbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Et Cetera . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

At a Glance

Citigroup’s Corporate & Investment Bank at a Glance Headquarters

Citigroup’s corporate & investment bank 388 Greenwich Street New York, NY 10013 Phone: 212-816-6000 www.citigroupgcib.com Primary Competitors

Goldman Sachs, Morgan Stanley, Merrill Lynch, Credit Suisse First Boston, JPMorgan Chase, Lehman Brothers Key Differentiating Factors

• Power position. Citigroup became the biggest financial services firm in the world, with 3,400 locations in 100 countries, when it merged with Travelers in 1998. • Separation of research and investment banking. Citigroup is the first big firm on Wall Street to voluntarily separate its research and investment banking functions, by creating a distinct new retail brokerage and equity research unit called Smith Barney. • Distribution and cross-selling. Citigroup already commands one of the largest retail sales forces in the country. Now the firm can sell everything from Travelers insurance to Citibank credit to consulting on big M&A deals. • Fixed income. The firm has tremendous strength in municipal tax-exempt bonds and collateralized and mortgage-backed securities.

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At a Glance

In the Recruiter’s Words

To learn what the firm says about job descriptions, the opportunities it offers, and the qualities it looks for in employees, see Citigroup’s Global Corporate and Investment Bank website at www.citigroup.com/citigroup/oncampus/gcib. In the Interview

• Forcefully convey that you are hungry to work in this industry and at Citigroup more than anywhere else. • Do your homework on what’s going on in the firm. • Find ways to demonstrate from your past work experience that you are reliable, hardworking, and assertive. • Let your personality show. Don’t be afraid to show that you have a life outside investment banking or that you have a sense of humor. Citigroup interviewers look for personable candidates with whom they’d want to spend many hours each week. What Insiders Say

“Everyone here wants to win. People feel a lot of momentum because of the new platform.” “There isn’t a lot of hand-holding at Citigroup. It’s a tough industry, and a lot of it you learn on your own.” “Know how serious it is. I underestimated the level of stress.” “If you have an opinion, you can express it. Step out of bounds. I always know whether or not I’m doing a good job here, whereas at other places, you have to wait for your midyear review.” Career Ladder

• Citigroup hires undergrads as analysts (sometimes called “apprentices”) for a two- to three-year program in the capital markets, sales and trading, fixed income, and global corporate finance divisions. • MBAs are hired as associates and can choose from the capital markets; cash, trade, and treasury services; fixed income; global corporate finance; or investment banking divisions. • Hiring for retail brokerages takes place at the local or regional level.

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At a Glance



Anticipated Global Hires, 2002–03

Sales & Trading, U.S. MBAs

15–20

Undergrads

20

Equity Research, MBAs, U.S.

8–10

Investment Banking MBAs, U.S.

40

MBAs, Europe

10

MBAs, Asia

5

MBAs, Tokyo

5

Summer associates (MBA students), U.S.

20

Summer associates (MBA students), Europe

20

Summer associates (MBA students), Asia

6–10

Undergrads, U.S.

125–175

Undergrads, international

125–175

Note: The above numbers are the most current available; Citigroup does not release this information regularly. Source: WetFeet research.



Anticipated Compensation, 2002–03

MBAs:

$85,000

Undergrads:

$55,000

Note: The above numbers are the most current available; Citigroup does not release this information regularly. Source: WetFeet estimates.

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The Firm

The Firm • Overview • The Bottom Line • Industry Position • More Industry Rankings • Organization of the Firm

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Overview The Firm

With its formation in 1998 through a merger between insurance conglomerate Travelers and commercial banking heavyweight Citicorp, Citigroup left the industry shaken and stirred with its redefinition of the diversified financial services model. If imitation is flattery, Citigroup should feel warm and fuzzy as Street neighbors like JPMorgan Chase, UBS, and Deutsche Bank have plotted similar courses. The firm describes itself as a work in progress that got its legs in 2001, when Citigroup stood proudly as one of the biggest and baddest firms on the Street, untouchable and invincible (or so its analysts and managers seemed to think). It posted a healthy $83 billion in revenues in 2001, claiming double-digit gains in many businesses and a 20 percent return on equity. Its 272,000 employees dwarfed the staffs of many state capitals, and the company dominated the league tables, gaining market share in many financial sectors. In 2002, Chairman and CEO Sandy Weill was named CEO of the year by Chief Executive magazine. But a lot has changed since then. The firm has been scrambling to do damage control since 2002, beset as it’s been with inquiries into its investment banking unit’s (then called Salomon Smith Barney) role in the Enron and WorldCom fiascoes. Ten Wall Street securities firms were fined a total of $1.4 billion, but it was Citigroup that got most of the heat (along with CSFB and Merrill Lynch), accused by regulators of issuing “fraudulent” research reports—it was slapped with the largest fine of $400 million. Like all of the other accused Wall Street firms, Citigroup neither admitted nor denied any wrongdoing. But the damage had been done. The firm’s reputation was tarnished, and its value diminished by $80 billion.

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CEO Sandy Weill responded quickly and aggressively to these accusations (and their results on the firm’s bottom line). First, highflying telecommunications analyst Jack million) for his involvement in the WorldCom and other scandals. Then Weill replaced Michael Carpenter, head of Citigroup’s Global Corporate and Investment Bank. Weill even apologized for Citigroup practices, which “do not reflect the way we believe business should be done.” And most important, Citigroup’s head honcho called for the separation of investment banking from research by absorbing Salomon Smith Barney’s I-banking functions into Citigroup’s corporate & investment bank

I have been reminded myself of how the appearance of what we do may be questioned and of how we must take care to ensure that our conduct does not raise such questions or in any way undermine our customers’ or shareholders’ confidence in the integrity of our business practices. —CEO Sandy Weill

The Firm

Grubman resigned (and was fined a hefty $15

“”

unit, and forming an independent equity research and retail brokerage unit called Smith Barney. Weill hired Sallie Krawcheck, a well-known Wall Street researcher with a gilded reputation, to head the new unit. But even these changes seem to pale in comparison to the July 2003 announcement that Sandy Weill will step down as CEO by year’s end—an announcement that came as a surprise to Wall Street, as many thought Weill would only ever leave his post “feet first.” As his successor, Weill has appointed Charles Prince, who replaced Michael Carpenter as head of the corporate and investment bank and who worked with regulators to navigate a smooth course through the storm of accusations against Salomon Smith Barney. Prince will continue to lead Citigroup’s investment bank from his new CEO post. Weill plans to remain chairman of Citigroup until 2006.

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Despite the beating it has taken, Citigroup’s investment bank, and the firm as a whole, seems to be pulling through fairly well. “We’ve picked up a lot of market share in M&A and equity over the last couple of years. It’s a bad climate, but we’re doing better than our competitors,” says one insider. Fundamental to its

The Firm

strategy are its global reach and strength in emerging markets; its diversified portfolio, which gives it resiliency in tough market conditions; and its huge balance sheet. In addition, its consumer group, identifiable by the ubiquitous “Live Richly” branding message, has performed well. With the company on the rise (again), the consensus among insiders is that Citigroup is a great place to work. Confidence in Citigroup’s business trajectory is a major contributor to the positive attitude. An insider says, “People feel a lot of momentum here because of the platform and the products we offer.” Insiders also speak glowingly of the relaxed culture. One says, “You’ll see Nerf balls on the banking floors—it’s fun to the extent that banking can be fun.” Other insiders tell us they chose Citigroup because of the generalist program, which allows new associates to try a variety of things before choosing one business. “We’ve got the best rotational system around, which is great for people who are more open-minded about how their careers progress,” according to one. A financial consultant insider says, “Citi gives you a lot of freedom in how you create your business. Unlike other firms, there isn’t pressure to sell a particular product.” The gripes we heard were mostly garden variety: hours that are sometimes oppressively long, high stress, and too much bureaucracy. “You have to be flexible. You have to expect to cancel a lot of things in your personal life. So when you do have time, make sure it’s quality time,” says an insider. Another insider, a financial planner, finds fault with the repetition in his job: “Every plan is different, but similar. The entire day, you’re wrapped around the phone and in front of the computer.”

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The Bottom Line The Firm

A tough economic environment and recent scandals aside, Citigroup is an exciting place to be right now. Sheer size, a wide range of opportunities, and a high-ranking position are what Citigroup has to offer its people. If you’re also looking for a comparatively laid-back attitude toward banking and a place that embraces the individuality of its employees, Citigroup might be a good fit for you. “It wouldn’t suit inflexible people, people who want their responsibilities well-defined,” says an insider. Don’t think for a second, however, that because the atmosphere is more relaxed, you’ll be working less. As one insider says, “The old Salomon Brothers culture is still here. We’re looking for the type of person who walks through walls to get something done.”

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Industry Position The Firm

The economy has spared no one, but Citigroup has fared well in the league tables. It ranked first among bookrunners in terms of underwriting proceeds for the first half of 2003 and first for global debt issuance with more than $271 billion in deals. The firm has also kept its grasp on a top-three ranking in a number of other categories.



Citigroup’s First Half 2003 Industry Rankings

Category

Rank 2003 2002

Proceeds ($M)

Share (%)

U.S. asset-backed securities

1

5

34,294

12.5

U.S. completed M&A

9

3

19,465

8.6

Goldman Sachs

U.S. leveraged loans

3

3

21,859

12.5

JPMorgan Chase

U.S. syndicated loans

3

3

79,021

15.9

JPMorgan Chase

Global debt & equity

1

1

288,072

10.5

Citigroup

Global common stock

2

1

3,519

13.5

Goldman Sachs

Global IPOs

4

1

347

16.4

CSFB

Global high-yield corporate debt 2

3

11,600

16.5

CSFB

Global loans

2

2

120,036

12.9

JPMorgan Chase

Global completed M&A

2

1

99,465

18.1

Goldman Sachs

Source: Thomson Financial.

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Market Leader Citigroup

More Industry Rankings The Firm

Institutional Investor Survey Rankings 2002 All-America Research Team

In this survey of equity analysts, Citibank (Smith Barney) took top honors for the second year in a row. 2003 All-Europe Research Team

Citigroup/Schroder took second, up from fourth in 2002. 2003 All-Japan Research Team

Nikko Citigroup took first, up from fifth in 2002. 2003 Asia Research Team

Citigroup/Smith Barney took third, up from eighth in 2002. 2002 Global Research Team

Citibank (then Salomon) took fifth, up from sixth in 2001. 2002 Latin America Research Team

Citibank (then Salomon) came in eighth, down from sixth in 2001. 2002 All-America Fixed-Income Research Team

Citibank (then Salomon) came in fourth, same as in 2001. Source: Institutional Investor, www.iimagazine.com.

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Fortune Magazine Rankings Global Most Admired Companies, 2003

The Firm

Citigroup fell to number 25, from eighth last year. Best Companies for Minorities, 2002

Citigroup ranked 47th. Source: www.fortune.com.

Organization of the Firm View from the Top Citigroup’s corporate & investment bank is one of five business units owned by Citigroup Inc., a financial services juggernaut with major operations in insurance, banking, consumer credit, and investment and asset management. Chairman and CEO Sanford “Sandy” Weill (formerly Travelers’ chief executive) is a Wall Street legend known for seeing value where others do not—many of his acquisitions either were losing money or had fallen out of favor when he bought them—and for quickly realizing value through successful assimilation and cost control. Citigroup’s corporate & investment bank was originally formed with the acquisition of Salomon Brothers, which it combined with financial services firm Smith Barney, to form Salomon Smith Barney. Weill transformed it from a money-loser

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in 1988 into one of the largest and most profitable financial institutions in the nation, returning 35 percent on equity in 1996. As a tactical maneuver to eliminate conflicts of interest between research and the company’s investment banking clients, Citigroup formed a separate and

The Firm

distinct research and private client company, flying under the restored Smith Barney moniker. Researchers, analysts, and associates are recruited and trained together by Citigroup before moving to their respective units. Citigroup’s corporate & investment bank is run by former Citigroup COO Charles O. Prince. Prince replaced Michael Carpenter in September 2002, during the New York State Attorney General Office’s probe into the role of Salomon Smith Barney executives in the WorldCom scandal.

View from the Middle Citigroup’s capital-raising activities cover underwriting, distribution of equity and debt securities, derivatives, and the syndication of bank and bridge loans. Strategic advisory services include M&A, divestitures, leveraged buyouts, privatizations, and corporate and financial restructurings. For more specifics, visit the firm’s website at www.citigroupgcib.com. To bolster the industry franchise groups, investment banking has additional North American offices in Atlanta, Boston, Chicago, Cleveland, Dallas, Houston, Los Angeles, Minneapolis, New York, Philadelphia, San Francisco, and Toronto. In 2001, Citigroup acquired a 50 percent stake in Nicco, expanding the firm’s Japanese coverage. That same year, Citigroup made headway in Latin America by acquiring Mexico’s Grupo Financiero BanamexAccival (“Banacci”). Europe is another growth area to watch, due to Citigroup’s established presence.

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View from the Bottom When you start at the firm, you’re posted in investment banking, capital markets, public finance, sales and trading, global corporate finance, e-business,

The Firm

or technology and operations. Your career path depends a great deal on where you are within the firm and on your ability and skills. If you’re an I-banker, you move up to vice president around your fourth year; then it’s on to director and managing director. Your contribution to your group and ability to bring in new business will determine how fast you climb the ladder. If you’re a salesperson or trader, your progression is less formal and is measured more by the responsibilities you have and by the commissions you earn for the firm from your clients.

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On the Job • Investment Banking Associate • Capital Markets Associate On the Job

• Public Finance Associate • E-Business Associate

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Investment Banking Associate The Investment Banking Group provides financial advice to corporate clients and helps them raise capital. No matter who buys whom and how much they fiddle around with the letterhead, your job as an associate isn’t going to change much.

Typical Projects On the Job

Typical projects include structuring and executing financings; underwriting new municipal bond issues; and advising clients on mergers, acquisitions, and other financial activities. Due to Citigroup’s prominence in fixed income, municipalbond underwriting, and high-yield securities, these are areas associates learn about even if they don’t actually participate in the specific projects.

The Work In general, projects are assigned to teams of two to four people who work very closely with clients to address their needs. Associates get responsibility on client accounts from day one and work long hours and weekends. They also work on proposals (called “pitch books”) aimed at winning new clients or new projects with existing clients. Typical tasks include: • Compiling, organizing, and analyzing financial data for client companies • Producing charts, tables, and other supporting documents, and then creating proposals and presentations for client meetings • Assessing company performance versus competitors or industry benchmarks • Planning and executing public offerings, private placements, project financings, tender offers, and other corporate financial transactions

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• Advising clients on capitalization alternatives and implications, evaluating merger and acquisition opportunities, responding to solicitations from other firms, and preparing recommendations on financial strategies An MBA is an assumed prerequisite for joining Citigroup as an investment banking associate. Undergrads come to work in research as analysts

“”

Your success is determined by how hard you work, rather than someone’s opinion and whimsy.

and stay for two to three years; after that, they leave the firm to attend business school or enter the industry. Analysts work alongside associates and officers in supporting roles. For example, they help

On the Job

create presentations and pitch books; assist in producing charts, tables, and statistical exhibits; and help research company peer-group information. Analysts can have a variety of undergraduate degrees, but all must have a facility for crunching numbers. Associates now join Citigroup as generalists and work with a number of product and franchise groups through structured rotations before settling on a specific area. This gives bankers a broader competence; consequently, associates help design their own curricula in various product groups and even in various regional and overseas offices, if appropriate. Insiders in I-banking say they appreciate the breadth of experience they gained in the generalist program.

A Day in the Life of an Investment Banking Associate 7:00

Up and at ’em. Realize that one retains much more of what’s in The Wall Street Journal after the second cup of coffee.

8:00

Arrive at office to find a ten-inch-thick set of financials, charts, and product information from the new medical client. Attempt to absorb as much as possible before 10:00 a.m. meeting with the project team.

9:00

Take a call from the telecom analyst to get an outlook on the industry and an assessment of the competitive environment for a new client.

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10:00 Meet with the project team. Try to sound intelligent without faking knowledge. Find out what others know and where to turn for additional research. Set timetable for getting back to client, and list action items to be completed in that time frame. A daunting amount of work. 11:45 Spend 15 minutes on the phone with a friend explaining once again why I’m not able to go skiing this weekend, or the next, or the next.

On the Job

12:00 Locate the client’s financials for the last three years and work with analyst to put them in a spreadsheet for analysis before lunch. 1:00

Hit favorite deli for the usual take-out sandwich.

2:00

Dig into past files of phone and networking companies to see how their situations were handled in the past.

3:00

Build a scenario for debt refinancing that looks plausible, and run different interest-rate assumptions for ten years.

3:30

Talk with another client’s attorney about language in the S-1 document to be filed with the SEC for the client’s upcoming IPO.

4:00

Make travel arrangements to meet with potential new client who was referred by IPO client.

5:00

Decide to run convertible-debt scenario for medical client as an alternative. More spreadsheets.

7:00

Copy spreadsheet on convertible scenario to take home and play with again later. Make a note to go skiing at least once before the season ends.

7:30

Hit the gym for a workout and a sauna.

8:30

Back at the desk—it’s time for take-out pizza and then a few more hours of wrestling with the numbers.

11:15 Homeward bound.

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Capital Markets Associate The Capital Markets group is responsible for trading and sales of equity, fixed income, and derivative securities as well as syndication and marketing of new issues. Capital Markets provides the distribution capability that enables Citigroup’s investment banking group to underwrite new issues. Capital Markets runs on massive IT/communications efforts that keep sales and trading staff closely linked with each other as well as with investment

On the Job

banking and research. On several dozen separate trading desks, the firm conducts its market making, trading, and institutional sales for domestic and international securities.

The Work Responsibilities vary depending on whether an associate is involved in sales or trading. Traders are involved in: • Position trading for institutional clients: finding buyers or sellers for specific securities or positioning block trades for clients on the open market • Risk management: assessing market risks for clients looking to buy or sell specific securities • Sector analysis: providing clients with advice from the research analysts in different sectors • Capital management: working with clients to manage their balance sheets and to finance specific transactions

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Salespeople are involved in: • Account coverage: being available to handle the needs of specific client accounts at any time • Relationship building: establishing long-term relationships with clients • Product distribution: helping to distribute new issues • Marketing: developing new institutional clients • Client contact: Visiting with the clients to review their needs • Supplying information to trading desks: obtaining feedback on marketability or prices of new issues

On the Job

A Day in the Life of an Institutional Salesperson 7:30

Arrive at the office and read The Wall Street Journal over coffee. Make sure there aren’t any surprises that will affect client’s positions. Try to imagine repercussions from the new tax changes; too early to think about taxes.

8:30

Listen to the morning research and trading calls. Good news for at least one client. Decide how the CPI numbers coming out this morning might affect the research department’s recommendation on several big S&P 500 issues. Start making calls to clients.

8:45

Begin writing tickets for trades not completed yesterday and setting up tickets for anticipated trades today.

9:00

Ready . . . aim . . . fire! Confirm opening-trade executions and call the appropriate clients.

10:00 The price on Dow Chemical has dropped back into the recommended buy range. Check client accounts to see who might have room for some more.

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1:30

Almost forgot! Late lunch with a client. Head downstairs and grab a cab.

2:40

Back at desk, assess progress on Tandy stock. Still more accounts to call. Try that pension fund again. Need to bite the bullet and explain to their traders why that hot IPO is down 15 percent from where we said it would be three days ago—probably my least favorite part of this job.

3:00

Final hour. The market is heading higher. Better get hold of some people before prices get out of their range. The semiconductor analyst tells everyone that although the stocks are up today, they are still buys. Call two clients who’ve been waiting for that analyst’s opinion.

4:00

Scramble to get a confirmation on a 10,000-share cross on the closing bell. Watch the tape intently to see it hit.

4:15

Pop a Zantac and tell sales assistant never to recommend that Thai restaurant again. Call the travel agent before he leaves and arrange for client visits with our utility analyst. Dallas, San Antonio, Austin, Waco, El Paso, and Amarillo—all in two-and-a-half days!

5:30

Finish making out list of tomorrow’s calls. Check all trade slips one more time for errors. Did they really say “buy” on that 30,000 Compaq?

On the Job

11:00 Watch the news about the CPI numbers. Spend one wonderful moment basking in the knowledge that I accurately anticipated a favorable response in the semiconductor segment.

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Public Finance Associate The public finance department provides financial advice and capital-raising services for municipal governments and other public sector organizations. This may include underwriting and distributing municipal bonds, providing long-term capital planning for local governments, or providing asset/liability guidance. Specific groups within public finance include airports, infrastructure (including transportation, sports, hotel and convention center finance, and project finance),

On the Job

health care, public power and utilities, derivatives, and housing.

Typical Projects Typical projects can involve hospitals, subsidized housing, resource recovery, or infrastructure work such as roads, bridges, or water systems.

The Work Public finance associates are typically involved in the following: • Helping determine the size and price of a new municipal bond offering • Working with a municipality to raise its creditworthiness • Evaluating the investment merits of various public sector projects • Pitching the firm to government agencies for specific financing projects • Analyzing the impact of various interest-rate scenarios on debt financings Like the investment banking group, public finance provides opportunities for non-MBAs to join in an analyst position. Analysts work with associates in analyzing and researching client projects and in creating pitch books.

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E-Business Associate Associates in the e-Business North America Management Associate Program get hands-on project experience and exposure to senior management. The program consists of two six-month rotational assignments in product management, sales, operations, finance, e-commerce, or strategic alliances, together with six weeks of formal classroom training.

On the Job 23

The Workplace • Lifestyle and Hours • Culture • Workplace Diversity • Compensation • Travel The Workplace

• Vacations and Other Perks • Career Path • Training • Insider Scoop

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Lifestyle and Hours Everyone we talked to emphasized the importance of underlining the demands of the investment banking lifestyle, especially for analysts and associates. While there is some variation across the different businesses, no one here is a stranger to long hours and stress. One insider says, “When I have a deal, I’m working 120 hours a week. Family and friends—everything—wait until the deal is done.” Another insider says, “Be realistic. It’s not an industry where you’re going to be going out every night or have free weekends. But [for] things that are important, make the time, and you’ll be able to do it.” If you’re involved in sales or trading, your work naturally revolves around the markets. As such, your hours (at least your minimum hours) and your workdays are well defined. You can expect to begin at around 7:00 or 7:30 a.m. (that’s 4:00 a.m. in San Francisco!) and work until 5:00 p.m. if you’re on an equity desk

The Workplace

or until 6:00 p.m. if you’re in fixed income. Work is intense, and you’ll rarely be far from your computer or phone during trading hours. You’ll have your nights, weekends, and holidays free, but many successful people in this area use some of that time to catch up on work-related reading. I-banking folks face a somewhat different workweek. The market’s hours are less relevant, which theoretically means you can get to work whenever you want—but which also means that the workday never really ends. Your days revolve around deadlines and meetings. When two, three, or four major things are happening simultaneously, life can definitely get hectic. In such cases, ten- to 14-hour days are the norm, and nights and weekends will become frequent parts of your workweek. Also, you’ll be out of the office visiting clients or companies fairly often.

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Culture Citigroup prides itself on being a melting pot. One insider says that “it’s a decidedly noninsular culture,” as a result of having bankers from so many legacy firms on board. Says another: “Citigroup’s corporate & investment bank has people from a variety of walks of life. We don’t have a cookie-cutter Ivy League staff.” Another says, “There’s a huge focus on diversity, which is what I love. It adds to a more thoughtful debate.” Don’t kid yourself, though: This is still an investment bank. You won’t see many tattoos or Birkenstocks in the office here—“diversity” has a narrower meaning on Wall Street than in the world at large. As an insider says, “The big myth that there’s a tremendous difference between different firms’ cultures is just that—a myth. No matter where you work, at the end of the day, the person who’s making the most money is serving the client best. And there are only a few

The Workplace

ways to do that: attention to detail, attentiveness to the client, and creativity.” Still, if you’re set on going into investment banking, you should know that Citigroup, unlike some other banks, likes to hire people who have lives outside of the markets—people who “like skydiving or used to write for a magazine,” as one insider tells us. Insiders speak fondly of the “laid-back” feeling at Citigroup. “You’re expected to be yourself. We value individual contributions,” says one insider. Another says, “It’s a sort of a work-hard, play-hard place where you like the people you’re working with at 4:00 in the morning.” Other insiders appreciate the firm’s emphasis on meritocracy. “Your success is determined by how hard you work, rather than someone’s opinion and whimsy,” says an insider.

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We hear that different areas of the bank have different

“”

When I have a deal, I’m working 120 hours a week. Family and friends— everything—wait until the deal is done.

cultures. “It’s so different—20 firms within one firm. The media group is very different from the automotive group . . . each has a different feel and different market dynamics,” says one insider. Still, the firm’s overall culture seems largely derived from the old Salomon Brothers. An insider says that the firm retains Salomon Brothers’ aggressiveness: “It’s a little bit of the Wild West here.” This is an intense place where there’s a lot

of opportunity for people who aren’t afraid to reach out and grab it. Another insider says, “Run with the ball. You have tons of resources, but it’s on you to figure them out.” Difficult environment and recent scandals aside, Citigroup is an extremely exciting place to be right now. Citigroup pioneered the consolidated financial services model—what insiders call “the platform”—so it is ahead of the game. “There’s a lot of momentum in terms of gaining market share. That’s a big

The Workplace

thing that gets people excited.”

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Workplace Diversity Citigroup has been working hard on workplace diversity, perhaps in response to class action lawsuits in its past alleging gender discrimination and sexual harassment. For the most part, Citigroup’s efforts appear to be working. Some insiders speak glowingly of the firm’s diversity. “There’s definitely a huge focus on diversity, which is what I love. You can be yourself, and different ideas and backgrounds are welcome. It adds to a more thoughtful debate.” Another says, “There’s a lot of ethnic diversity, women, and foreigners.” Others are more realistic: “As for diversity, it’s pretty good for the industry, but it definitely depends on the region. It’s better than it was, but it’s still a white man’s world.”

Opportunities for Women “With regard to females on the job, we’re easily outnumbered,” says a female

The Workplace

insider. “It’s not an easy environment either, due to daily pressure and all the ‘jokester’ individuals.” Another insider says that, “most women need to desensitize themselves, hold their own ground, and be very forthright.” On the other hand, a third insider notes that the firm’s aggressive internal responses to its troubles—which have included training programs in sexual harassment prevention, child-care programs, efforts to increase the number of women hired, and special mentoring programs—have “made employees more cognizant of what they say and what goes on.” Citigroup has initiated a number of internal programs to help recruit, acclimate, and promote female and minority employees, including mentor programs, employee network programs (Citigroup Pride, Citigroup Women, and Citigroup Working Parents), participation in heritage months, and work/life balance initiatives. In 2002, the firm was once again

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named one of the “100 Best Companies for Working Mothers,” by Working Mother magazine. “However,” adds one insider, “people still joke, and you have to be strong enough to handle it.” Still another insider says, “In a meeting of 90 people, I’ll be one of five women.” For more on diversity at Citigroup, visit www.citigroup.com/citigroup/oncampus/homepage/diversity.htm.

Compensation Citigroup says its compensation is competitive with others on the Street. WetFeet estimates that in 2002 to 2003, starting associates at the company

The Workplace

received a base salary of $85,000, plus a sign-on bonus of $20,000 to cover relocation, and a year-end bonus of $25,000 for the initial year (which actually begins in August). Associates starting at Citigroup for the 2003 to 2004 season can expect similar compensation. The second-year bonus can equal or exceed the initial base salary, and things go up from there. For the first few years, compensation is fairly predictable on the I-banking side, where different employees’ work and responsibilities are somewhat similar regardless of industry specialization. On the sales and trading side, however, compensation varies based on measurable aspects of individual performance, such as sales volume from assigned clients or trading activity.

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Travel If you’re in investment banking, you’ll probably be on a first-name basis with the firm’s travel agency. When deals are active, you could be flying out weekly to a client for meetings. I-bankers learn that personal evening and weekend plans are always subject to being bumped by a hot prospect, a road show, a hostile takeover attempt, or an unexpected crisis. One I-banking insider estimated that associates are on the road about 10 percent of the time, VPs about 20 percent. Staffers in other businesses tend to travel less. If you’re in trading, generally your biggest work-related trips will be down the block to Starbucks for your caffeine fix. Client visits or the occasional golf outing will take salespeople out of the office every now and again. Financial planners travel locally to meet clients. According to an insider, M&A people do some domestic travel “a

The Workplace

couple times a month. It depends on what’s going on. Some international travel for cross-border mergers.”

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Vacations and Other Perks Analysts and associates get 15 days of vacation to start with, but it may be difficult to find time to take it all. As for perks, the company offers a full array of health benefits, company-paid insurance, a flexible spending account, a 401(k), a pension plan, annual stock bonus, and even an adoption plan that provides two weeks off and partial reimbursement for adoptions. One insider speaks animatedly about a program in which staffers can purchase shares at a discount: “It’s the most generous package in the industry, and it’s a huge contributor to long-term wealth.” Then, of course, there are the free cab rides home on late nights, the occasional free lunches,

The Workplace

and the “employee appreciation” events, or parties.

Career Path Career paths naturally vary according to your area of concentration, the location of your office, and the availability of openings. Investment banking associates have a fair amount of latitude and are expected to move around during their first two to three years. Once they settle into a specific banking area, they’re expected to progress on up to senior associate, vice president, and then managing director. As for moving across businesses, an insider says, “There really isn’t much lateral hiring. Maybe if there’s a gap in one group, someone from another group will fill it, but it’s more of a directing resources situation than hiring and firing. The focus is more on mobility.”

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Investment banking requires an in-depth education in business finance, accounting, and quantitative analysis. Consequently, an MBA is still usually a requirement for a career in this industry. However, undergrads can begin as analysts working in the Smith Barney unit, spend a couple of years in that position, and then take their experience into related work or go back to school for an MBA. The firm asks new analysts for a two-year “understanding,” although there’s no formal commitment from either side. But with increasing frequency, Citigroup now will apparently permit an analyst to remain in the program for a third year and in some cases become an associate after that. This seems to be particularly true in Capital Markets. For analysts who go back to school for their MBA and plan to return to Citigroup, the firm occasionally offers tuition assistance, including low-interest advances against future bonuses. Undergrads will find a more level playing field in sales and trading, where the skills required don’t necessarily come from an MBA curriculum. Here it’s much easier for undergrads to rise up the ladder. The ladder is also somewhat shorter because there aren’t as many levels of hierarchy as in investment banking. College

The Workplace

grads with almost any major can enter as apprentices and learn sales and trading from the ground up. After a number of months in classes and rotations, apprentices may be eligible for permanent sales and trading positions. Apprentices who can prove their worth on the trading desk can become full-fledged traders within a few short years. MBAs are expected to rise up through the ranks since they’re assumed to be the best educated and most capable. However, lateral movement can have an impact on career mobility, as can location. A generalist I-banker in New York, for example, could potentially have greater mobility than a technology I-banker in San Francisco because there are simply more options available for lateral movement in Manhattan. And with the firm’s generalist program, movement is encouraged during the first few years at Citigroup. A benchmark expectation is to become a managing director in seven or eight years.

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Midcareer candidates already tend to have their direction well defined and are generally hired for the area most closely related to their previous experience. Nevertheless, they may move around at the outset if there isn’t an obvious slot for them.

Training Says a recruiting insider, “We take great pride in the fact that most of our training classes are taught by managers and professionals within the organization.” The general training program for graduates comprises five modules: an overview of Citigroup, M&A, equity, fixed income, and series 7 preparation. Training

The Workplace

components include classroom education, presentations from industry experts (both in and out of house), on-the-job rotations, and preparation for license exams. Training also includes less formal but no less important components such as mentoring, team-building exercises, and corporate cocktail parties and dinners.

Training Notes for MBAs Investment Banking Associates

I-banking associates participate in a six-month training program that gives an overview of Citigroup and covers security analytics, capital markets, M&A, and regulation. Associates are given ample opportunity to get to know their peers, as well as senior management through a mentoring program.

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After the training program, associates go through a generalist program, which includes exposure to a variety of product and franchise groups, developing a broad banking competence, forming relationships within the firm, and gaining knowledge of all areas of the investment banking division. Generalists have input into designing their own curriculum of three 2-month rotations. Emphasis is placed on entrusting generalists with real responsibility. At the end of the first year, generalists choose a specialization. Capital Markets Associates

New sales and trading associates now undergo a more generalist approach that “enables them to educate themselves,” according to one recruiting brochure. Don’t worry, though; you’re not going to swim out into open water your first week—the training is structured into three phases. Phase one is Business Production School, which includes the same six weeks of classroom training that your friends in Ibanking get. In phase two, you part company with the I-bankers and go off to ten weeks of special classes in all aspects of sales and trading, plus some desk

The Workplace

rotations. Phase three consists of yet more rotations—of longer duration; by now, you’ll have narrowed your top choices to three or four. This phase ends when you’re picked for a job by one of your rotation desks. Global Corporate Finance Associates

Before beginning the 29-month rotational program, associates participate in a three-month training program in New York City. The program builds on an understanding of financial statement reporting and develops the ability to analyze a company’s financial information. The training curriculum includes financial accounting, analytics, cash-flow modeling, economics and capital markets, corporate valuation, industry overviews, research tools and Bloomberg, and series 7 and 63.

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Training Notes for Undergrads Analysts go through a five-week program that’s similar in most regards to the general training associates receive. Analysts’ classroom instruction includes: • Accounting, finance, and other general business concepts • An overview of investment banking and how it interacts with other divisions • Extensive computer and financial-modeling training • Information sourcing, including in-house and external databases

Insider Scoop The Workplace

What Employees Really Like I gotta be me. It was uncanny how often the term “laid-back” came up when

talking to insiders, especially in the context of a major investment bank. An insider says, “You’d think it’s this huge place, which it is, I guess, but it’s got a small-firm feel.” Another insider says, “You feel like you know everyone you need to know, because the different groups work so closely together.” And the firm seems to encourage individuality. “If you disagree, talk about it. No one’s expected to fit into a mold here,” says an insider, while another says, “We take our work seriously, but ourselves not too seriously.” Taking responsibility. Citigroup employees are given real responsibility from the

moment they sign on. “Day one as an associate, you’re expected to contribute,”

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says an insider. Oftentimes, that might mean responsibility for proofreading documents and creating spreadsheets, but for those who “get it,” the opportunities for advancement are all over the place. “I like the fact that it’s me out there having meetings, attending road shows, having lunch with the clients,” says one insider in sales. “I have a great deal of personal interaction.” Having fewer bankers means more client exposure. Associates have been directly involved with clients early on in their tenure. And when you do gain direct exposure at Citigroup, you’re generally not lost in what one insider refers to as “overteaming”—showing up to meet a client with a small army of people. Have it your way. By design, MBAs are moved around a good bit during the

first year or so—when you eventually settle in, both you and your manager will have a higher degree of confidence that you’re doing what you’d really like to do. Moving around also tends to help people build relationships with other departments, something insiders say is more evident at Citigroup than at other firms. One insider says, “The biggest reason I came here was the generalist program that doesn’t force you to choose a group right away. I wanted to try a

The Workplace

bunch of things and get a variety of experiences. We’ve got the best rotational program around.” Less is more. Teams at Citigroup generally consist of two to four people rather

than the six to eight (at least) you’ll find elsewhere. And these teams are tight: Citigroup places much emphasis on creating teams that actually work well together. Thus, insiders feel that even though they usually progress in title at about the same rate as I-bankers at rival firms, they tend to get “VP-level responsibility” earlier because the teams are smaller and often more supportive. It’s the people, stupid. One insider involved in recruiting reports that he and his

colleagues go out of their way to ensure that new hires are a good fit with the bank. Consequently, people seem to admire each other at Citigroup. An insider says, “One of the guys I work with just asked me to be the best man in his

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wedding.” Another says, “People respect your time, because they want you to respect them.” Though aggressive, the people at Citigroup seem to be nicer relative to those at some other Wall Street banks. One insider, who worked at two other top firms before coming to Citigroup (then Salomon Smith Barney), says, “there are a lot of a-holes in investment banking,” but that most bankers at Citigroup are actually “good human beings.”

Watch Out! It still ain’t retail banking. Citibank commercial staffers’ more relaxed hours and

demands will have little effect on their corporate cousins. Investment banking is a highly demanding business that can be all-consuming if you let it. Preordained notions of free weekends and evenings do not apply to you, at least not at first. The flipside of all that work? As an insider says, “The financial rewards are nice.” Big egos, little desks. Citigroup teams may be better than some, but they’re also

not immune to the occasional personality rift. One former employee notes: “If

The Workplace

you work on a desk, you are with these people all the time. You have to learn to get along with all of them, but especially with your supervisor, or you’ll start hating work. Often they’re small groups. With very big egos. It’s not easy.” If you’re not good at teamwork, this may be a difficult fit for you. That shaky feeling. There are a lot of awfully confident-seeming people in

investment banking. Some of those people are blind with confidence. The smart ones, on the other hand, know that disaster is always out there waiting for them around the next corner. As an insider says, “There’s more career risk [in I-banking] than there is in other industries. If something bad happens to the market, all of a sudden you’re hearing about 3,000 people being laid off.” Even with all of Citigroup’s riches behind it, it’s still an investment bank, part of an industry that’s notorious for treating people like kings and queens when times

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are good and discarding them like yesterday’s newspaper when things turn sour—something to think about before making your career decision. Size does matter. Bigger isn’t always better. In some ways, it can be worse. For

instance, it can mean more bureaucracy and more politics. Being bigger has resulted in management challenges at Citigroup. One insider points out that there are now two more levels of management between him and the top echelons of the firm. He adds, “There’s a little more politics. . . . There’s more of a sensitivity to what organization a person came from than to whether that individual is the right person for the job.” Kids? Ha! Citigroup offers a three-month maternity leave. But the realities of

working in financial markets are simply not compatible with the desire to have children. “I can’t say I know one successful woman with children,” says an insider. “Either they are single, married without children, or have children who are already grown. It’s the nature of the business. You need to be there when the market is up.” Another insider thinks it’s easier to juggle two lives the more senior you get. “Some VPs are having children. Things change; sometimes

The Workplace

career is not number one.”

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Getting Hired • The Recruiting Process • Interviewing Tips • Grilling Your Interviewer

Getting Hired 41

The Recruiting Process Citigroup has a centralized recruiting process that hires and trains individuals for its investment bank and consumer bank at the same time. To acquire new investment banking, capital markets, and research talent, the firm conducts a formal recruiting effort on 16 B-school and 26 undergraduate campuses. In a program that internal recruiters say “seems to begin earlier each year,” resumes are reviewed in the early fall for on-campus interviews to be held in October and November. The process culminates with an industry-common event called “Super Saturday,” which for some may bear an eerie resemblance to a fraternity or sorority rush. In November, about 60 candidates are invited to New York at the company’s expense for a Friday evening cocktail party and group dinners followed by Saturday one-on-one sessions with senior officers of the firm. Candidates meet with five different managers in half-hour sessions, in addition to mingling at the social gatherings. In what is described as a “somewhat democratic process” (meaning you don’t necessarily have to get all five managers to think you walk on water), candidates are reviewed and then selected or rejected the next day. Cost and practicality have dictated Citigroup’s decision to recruit at fewer

Getting Hired

campuses. The limited number of openings and the cost of sending multiple company representatives to each campus have apparently kept the program from expanding. Nevertheless, the firm is happy to accept inquiries from candidates at schools it doesn’t visit. Citigroup claims that all unsolicited resumes are reviewed and that a number of candidates are selected for the

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training program each year from other campuses in this manner. As you go through the process, remember that Citigroup likes people whose personalities are as attractive as their finance skills. An insider says, “People are much less concerned with whether you can do the job than with whether they want to work with you. Fit is more important than you realize.”

“”

People are much less concerned with whether you can do the job than with whether they want to work with you. Fit is more important than you realize.

Special Information for MBAs The MBA recruiting program currently conducts formal recruiting efforts at the schools listed below. Citigroup also attends career fairs and holds campus information sessions at these and an assortment of other schools. The number of business schools visited is only slightly decreased from the previous year, but expect plenty of competition as business school enrollment has increased in proportion with unemployment. A higher number of grads are clamoring for a smaller number of coveted I-banking slots. For a calendar of campus events, see the Citigroup Calendar of Events for the Americas (www.citigroup.com/citigroup/oncampus/gcib/calendar/index_americas.htm).

Getting Hired 43

Getting Hired



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MBA Campus Recruiting

School

Program

Positions Interviewed

Amos Tuck

Investment Banking Sales & Trading

Full-Time, Summer Full-Time, Summer

Anderson

Investment Banking Sales & Trading

Full-Time, Summer Summer

Chicago

Investment Banking Sales & Trading Equity Research Capital Markets

Full-Time, Summer Full-Time, Summer Full-Time, Summer Summer

Columbia

Investment Banking Sales & Trading Equity Research Capital Markets

Full-Time, Summer Full-Time, Summer Full-Time, Summer Summer

Darden

Investment Banking

Full-Time, Summer

Fuqua

Investment Banking Sales & Trading Equity Research

Full-Time, Summer Summer Full-Time, Summer

Harvard

Investment Banking

Full-Time, Summer

Johnson

Investment Banking Sales & Trading Equity Research

Summer Full-Time, Summer Full-Time, Summer

Kellogg

Investment Banking Sales & Trading

Full-Time, Summer Full-Time, Summer

Kenan-Flagler

Investment Banking Sales & Trading

Summer Summer

Leonard N. Stern

Investment Banking Sales & Trading Equity Research Capital Markets

Full-Time, Summer Full-Time, Summer Full-Time, Summer Summer



MBA Campus Recruiting (cont’d)

School

Program

Positions Interviewed

Michigan

Investment Banking Equity Research

Full-Time, Summer Full-Time, Summer

Sloan

Investment Banking Sales & Trading Capital Markets

Summer Full-Time, Summer Summer

Stanford

Investment Banking Equity Research

Summer Summer

Wharton

Investment Banking Sales & Trading Equity Research Capital Markets

Full-Time, Summer Full-Time, Summer Full-Time, Summer Summer

Yale

Investment Banking

Summer

Source: Citigroup.com.

Special Information for Undergrads Citigroup’s corporate & investment bank interviews for analyst positions at the undergraduate campuses listed below. The firm also attends career fairs and conducts company information sessions at these and a number of other campuses. Many of the undergrads WetFeet spoke with this year felt lucky to get an interview at any firm, let alone the firm of their choice, so expect intense competition for these positions. The number of undergraduate campuses on Citigroup’s roster

Getting Hired

is slightly lower than last year. For a calendar of campus events, see the Citigroup Calendar of Events for the Americas: www.citigroup.com/citigroup/oncampus/gcib/calendar/index_americas.htm.

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Among unsolicited applications, referrals from within Citigroup definitely help a candidate land an interview. “If you can get an inside edge,” says an insider, “it makes a difference.” You might also help yourself get an interview if you take the initiative to come to New York rather than waiting for the company to fly you out based solely on the strength of your resume.

Special Information for Midcareer and International Candidates Surprisingly few people join Citigroup each year from other securities firms, clients, or even law firms. (Apparently, the bulk of new hires really is at the associate and analyst levels.) Nevertheless, the firm is always happy to review such candidates on their individual merits for available positions. There’s no formal recruiting for such people, though they may be included in training classes with the new recruits according to their individual needs. Candidates interested in international positions can also submit resumes to headquarters in New York. Those who want to be based overseas should also submit their applications directly to the office they’re interested in.

Opportunities for Summer Interns Citigroup’s summer intern program is available to MBAs entering their second year and undergrads before their senior year. The purpose of the program is to groom students for associate or analyst jobs upon graduation, and it’s seen as

Getting Hired

increasingly important by recruiters and interested candidates alike. Citigroup offers summer programs for MBAs in capital markets; cash, trade, and treasury services; fixed income; global corporate finance; and investment banking. Undergrads can participate in summer programs in capital markets, sales and trading, public finance, and investment banking.

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Undergraduate Summer Internship Campus Recruiting Program

UC Berkeley

Investment Banking

Boston College

Investment Banking Sales & Trading

Brown

Investment Banking

Chicago, University of

Investment Banking

Columbia

Investment Banking Sales & Trading Capital Markets

Cornel

Investment Banking Fixed-Income Research Sales & Trading Capital Markets

Dartmouth

Investment Banking Sales & Trading Capital Markets

Duke

Investment Banking

Georgetown

Investment Banking Sales & Trading Capital Markets

Harvard

Investment Banking Sales & Trading

Howard

Corporate & Investment Bank Sales & Trading Capital Markets

Illinois

Investment Banking

UCLA

Investment Banking Fixed-Income Research

Michigan, University of

Investment Banking Capital Markets

Getting Hired

School

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Undergraduate Summer Internship Campus Recruiting (cont’d)

School

Program

Morehouse

Corporate & Investment Bank Sales & Trading

New York University

Investment Banking

Northwestern

Investment Banking

Pennsylvania, University of

Investment Banking Sales & Trading Fixed-Income Research Capital Markets

Princeton

Investment Banking Fixed-Income Research Sales & Trading Capital Markets

Spelman

Investment Banking Sales & Trading

Stanford

Investment Banking

Texas A&M

Investment Banking

UT Austin

Investment Banking

Virginia, University of

Investment Banking Capital Markets

Western Ontario, University of

Investment Banking

Yale

Investment Banking

Getting Hired

Source: Citigroup.com.

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The summer program exposes interns to all of the various departments. It also provides both the candidate and the firm a 12-week trial run. According to a recruiting brochure, “We want our summer interns to be able to answer three questions at the end of the summer: 1. Is Wall Street for you? 2. Is [the department you’re in for those 12 weeks] for you? 3. Is Citigroup’s corporate & investment bank for you? Besides introductory classroom training, summer interns attend “Distinguished Speaker” events every week to broaden their understanding of banking and of the firm. In the past, the firm generally has made permanent offers to about two-thirds of its summer interns. Of that group, about two-thirds generally accept. The remaining slots were filled with new graduates via the campus recruiting program. Given the increased competition for investment banking jobs, this ratio may have changed. A final tip: To get one of these positions, you have to apply early. If you’re getting ready to enter an MBA program, you need to apply before you even start the program so you can participate in fall recruiting and be eligible for an intern position the following summer.

Getting Hired 49

Interviewing Tips It’s wise to remember just how competitive banking and trading positions are. Poise is important, and preparation is mandatory. As with its peers on the Street, Citigroup’s interviewing process is demanding. “It’s extreme,” says an insider. Be ready for five to ten one-on-one or two-on-one interviews. There are no panel interviews. Your on-campus interview will most likely be with someone from the recruiting department at the firm, but others from various groups may also participate and will definitely be on your interview schedule if you’re invited to “Super Saturday.”

Dos • Do your homework on the firm; this WetFeet Insider Guide is a great start. • Demonstrate your commitment, willingness to sacrifice, and your eagerness to be a success at Citigroup. “We look for people who would walk through walls to get something done,” says a senior insider. • Have a fluent, well-conceived explanation for why you want to get into this industry. • Be personable. Don’t be afraid to act human or admit your weaknesses. • Have some specific ideas about things you think you’d like to do and why you believe you’d be good at them.

Getting Hired

• Know why you’d like to work at Citigroup. Be prepared to explain why you’d prefer this firm to Morgan Stanley or Goldman Sachs, for example. • Interviews often include ample time for you to ask questions. Rehearse interviewing your interviewers. • Dress conservatively. This is still a career with a strong sense of tradition.

50

• Little things count: Stand up when people walk into the room. Wait for them to sit down before you do. Make lots of eye contact. • Be ready to prove you’re up to date on industry news. • Re-examine your resume for weak spots, and formulate a solid response— they’ll more than likely query you on it.

Don’ts • Don’t be cocky or act like you know everything there is to know about investment banking. • Don’t try to fake something about banking or trading if you really don’t know. • Don’t appear inflexible or unwilling to “pay your dues” for the first few years. • Don’t talk about compensation at all. • Don’t be afraid to call out distinguishing aspects of your background even if they’re unrelated to investment banking—Citigroup likes diversity. • Don’t admit that you don’t follow the markets.

Getting Hired 51

Grilling Your Interviewer A few good questions to ask are: 1. How does Citigroup position itself when it’s competing against firms like Merrill and Goldman Sachs in pursuing an important client? 2. How do training programs at Citigroup measure up to those of other I-banks? 3. What challenges to the firm do you foresee with the upcoming change in leadership? 4. What is the firm still doing to address the issues and public perceptions that have arisen in relation to the WorldCom and Enron issues? (Of course, such

Getting Hired

a question should be approached with a heavy dose of discretion.)

52

For Your Reference

For Your Reference • Recommended Reading • The Numbers • Et Cetera

53

For Your Reference

Recommended Reading Articles “One Year Later, the Impact of Sarbanes-Oxley”

A look at how the controversial Sarbanes-Oxley act has restructured the accounting and consulting industries, and what positive changes have actually taken place. Source: Forbes, 7/22/03.

“Chief of Citigroup Says He’ll Step Down at Year’s End”

One of many reports on Weill’s surprising announcement that he will indeed be giving up his position at the helm. Source: New York Times, 7/17/03.

“Citigroup’s Climb to Riches, One Merger at a Time”

This article details the growth of Sandy Weill’s empire, from an ousted president of American Express, to the head of the largest financial services firm in the United States. Source: New York Times, 7/17/03.

“Citi, Brokers Facing Formal NYSE Charges”

Several more Citigroup brokers are under fire for alleged unfair sales practices over their handling of WorldCom employee accounts. The accused brokers are filing countersuits against Citigroup and Jack Grubman for inaccurate coverage of WorldCom. Source: Forbes, 7/10/03.

54

For Your Reference

“Can Sallie Save Citi, Restore Sandy’s Reputation, and Earn Her $30 Million Paycheck?”

Citigroup is so far the only bank on Wall Street to truly separate its research and investment banking functions—it went ahead and formed a distinct research and brokerage firm under the banner, Smith Barney. Chairman and CEO Sandy Weill surprised many by hiring 38-year-old Sallie Krawcheck to head this 530-branch unit. But coming from the much smaller boutique research firm Sanford C. Bernstein, with only 44 analysts, and 350 traders, salespeople, and assistants, does Krawcheck have what it takes? Source: Fortune, 5/27/03.

“Wall St. Deal Is Finalized”

After being accused of deceiving investors with tainted stock market research designed to win investment banking fees, ten Wall Street securities firms (including Citigroup’s Salomon Smith Barney unit) agreed to pay a combined total of $1.4 billion in fines and change the way they do business by separating stock market research from investment banking. Citigroup is paying $400 million, the largest amount. Former Salomon Smith Barney telecom analyst Jack Grubman is being barred from business and fined $15 million. Source: CNNMoney Online, 4/28/03.

“Citigroup Statement on Salomon Smith Barney Settlement with the SEC, NASD, NYSE and New York Attorney General”

Citigroup’s official public response to the investigations surrounding its research practices—just as the other Wall Street firms, Citigroup neither confirms nor denies any wrongdoing, but CEO Sandy Weill does apologize for shaking the public faith in his banking empire. Source: Citigroup Press Release, 4/28/03.

55

For Your Reference

News Publications Three must-reads for investment bankers—and anyone interviewing at Goldman—are the weekly Investment Dealer’s Digest (news, features, and industry rankings), the monthly Institutional Investor (news, issues, emerging trends), and the weekly Corporate Financing Week (corporate capital raising, M&A, and U.S. investment banking trends and insights). Other key publications include the The Wall Street Journal (if you’re going into banking, it’d be a good idea to start reading the newspaper that takes its name from the Street), Barron’s, Investors Business Daily, and the Financial Times.

Books The King of Capital: Sandy Weill and the Making of Citigroup

Amey Stone and Mike Brewster (John Wiley & Sons, 2000) A chronicle of Citigroup CEO Sandy Weill’s rise from a runner to a billionaire executive overseeing one of the world’s largest financial conglomerates. Tearing Down the Walls: How Sandy Weill Fought His Way to the Top of the Financial World . . . and Then Nearly Lost It All

Monica Langley (Free Press, 2002) This colorful biography tells the story of Weill’s willful ascent to the top of the Wall Street echelon, his aggressive management style, and the melodrama and deceit that go with the territory. Wall Street Meat: Jack Grubman, Frank Quattrone, Mary Meeker, Henry Blodget and me

Andy Kessler (Escape Velocity Press, 2003) A first-person biography of life on the Street working among some of the major players.

56

For Your Reference

Monkey Business: Swinging Through the Wall Street Jungle

John Rolfe and Peter Troob (Warner Books, 2000) This book takes readers behind the scenes at Donaldson, Lufkin & Jenrette (absorbed in 2000 by Credit Suisse First Boston), depicting the ridiculous lengths that entry-level grunts on Wall Street can go to cope with long hours, stress, and despotic managers; fit in with their peers; and stand out in the eyes of those who can advance their careers. Heard on the Street: Quantitative Questions from Wall Street Job Interviews

Timothy Falcon Crack (Timothy Crack, 2000) This book is indispensable if you’re a PhD or other job candidate vying for a quantitative position (for example, derivatives analysis) on Wall Street. Liar’s Poker: Rising Through the Wreckage on Wall Street

Michael Lewis (W.W. Norton & Company, 1989) This fun, easy read provides tremendous insight into the culture of Salomon Brothers, sales and trading, and Wall Street in general during the boom of the ’80s. You’ll also learn a fair amount about how investment banking works. Though much has changed since this era, the personality types remain exactly the same.

57

For Your Reference

The Numbers 

Citigroup Net Income—Segment View Net Income ($M) Q1 2003 Q2 2002

1-Yr. Change (%)

Global Consumer

2,146

1,700

26

Global Corporate and Investment Bank

1,431

1,176

22

466

424

10

4,103

4,843

15

Global Investment Management Net Income

Source: Citigroup.com.



Citigroup Net Income—Regional View Net Income ($M) Q1 2003 Q2 2002

North America (excluding Mexico)

2,626

2,511

5

Mexico

349

288

21

Asia (excluding Japan)

402

378

6

Japan

207

265

–22

Latin America

200

–213

NM

Europe, Middle East, and Africa

416

288

44

NM = not meaningful. Source: Citigroup.com.

58

1-Yr. Change (%)

For Your Reference



Citigroup Annual Financials Year-End December 12/02

12/01

12/00

Revenue ($M)

92,556

112,022

111,826

Operating income ($M)

41,770

54,320

58,540

Operating margin (%)

45.1

48.5

52.3

Total net income ($M)

15,276

14,284

13,519

Source: Hoovers.com.

Personnel

Total employees, 2002: 255,000 Sources: Hoovers.com; WetFeet research and analysis.

59

For Your Reference

Et Cetera Key People Sanford I. Weill, Chairman Charles O. Prince, CEO, Citigroup Hans Prince, CFO, Global Corporate & Investment Bank Sallie L. Krawcheck, Chairman and CEO, Smith Barney Robert Druskin, Chief Operations and Technology Officer; President and COO, Global Corporate and Investment Bank Robert R. Morse, Head, Global Investment Banking Thomas G. Maheras, Vice Chairman, Corporate and Investment Bank and Head, Global Fixed Income Michael Klein, CEO, Global Corporate and Investment Bank, Europe, Middle East, and Africa Stephen H. Long, CEO, Asia Pacific, Global Corporate & Investment Bank Shirish Apte, CEO, Global Corporate and Investment Bank, Central and Eastern Europe, Middle East, and Africa; Country Head, Poland John Donnelly, Senior Human Resources Officer, Global Corporate and Investment Bank

60

For Your Reference

Recruiting Contacts Citigroup has very specific recruiting contact information online. Americas: www.citigroup.com/citigroup/oncampus/gcib/contacts/a_contacts.htm Japan: www.citigroup.com/citigroup/oncampus/gcib/contacts/j_contacts.htm Asia-Pacific: www.citigroup.com/citigroup/oncampus/gcib/contacts/ap_contacts.htm Europe: www.citigroup.com/citigroup/oncampus/gcib/contacts/e_contacts.htm

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WETFEET’S INSIDER GUIDE SERIES JOB SEARCH GUIDES

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Ace Your Case: Consulting Interviews Ace Your Case II: 15 More Consulting Cases Ace Your Case III: Practice Makes Perfect Ace Your Case IV: The Latest & Greatest Ace Your Case V: Return to the Case Interview Ace Your Interview! Beat the Street: Investment Banking Interviews Beat the Street II: I-Banking Interview Practice Guide CAREER & INDUSTRY GUIDES

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About Our Name One of the most frequent questions we receive is, “So, what’s the story behind your name?” The short story is that the inspiration for our name comes from a popular business school case study about L.L. Bean, the successful mail-order company. Leon Leonwood Bean got his start because he quite simply, and very literally, had a case of wet feet. Every time he went hunting in the Maine woods, his shoes leaked, and he returned with soaked feet. So, one day, he decided to make a better hunting shoe. And he did. And he told his friends, and they lined up to buy their own pairs of Bean boots. And L.L. Bean, the company, was born . . . all because a man who had wet feet decided to make boots. The lesson we took from the Bean case? Lots of people get wet feet, but entrepreneurs make boots. And that’s exactly what we’re doing at WetFeet.

Citigroup is the largest financial services firm in the world and has single handedly transformed the financial services industry by introducing a new platform on which to do business—one that offers a full range of financial products to all levels of customers, from consumers to corporate institutions. The firm’s size and diversity offer job seekers a wide range of opportunities—many of them high-ranking—amid a relaxed and individualistic corporate culture. For bankers who aren’t afraid to work hard, who want to blaze their own trails, and learn as they go, Citigroup’s Corporate & Investment Bank is a great place to be.

Turn to this WetFeet Insider Guide to learn • How Citigroup maintains its monolithic position at the top of the financial services world. • How Citigroup’s Corporate & Investment Bank has quickly adjusted to recent changes in the industry.

Citigroup’s Corporate & Investment Bank

Careers/Job Search

Citigroup’s Corporate & Investment Bank

• How Citigroup differentiates itself from its competitors. • How the Corporate & Investment Bank is organized, from top to bottom. • About a typical day in the life for Citigroup investment banking, capital markets, and public finance associates. • What employees love most and like least about the firm. • How Citigroup’s recruiting process works. • What tips insiders offer to help you score big points with your interviewer.

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2004 Edition