Citi shortens its analyst program to two years as Wall Street fights private equity for young talent

Citi has shortened its analyst program from three years to two years, as it battles for young talent with private equity firms, according to an internal memo confirmed by a Citi spokesperson to Fortune. The financial sector has long struggled with the challenge of attracting top graduates, with junior bankers earning salaries of $80,000 early in their careers, compared to private equity analysts who can earn up to $300,000.

In recent years, private equity firms have started recruiting rising analysts earlier, sometimes even two years before they officially accept a position, using tactics such as "on-cycle" recruiting and college student "coffee chats." This trend has led banks like Citi to shorten the six-and-a-half-year path from analyst to partnership to two years, in an effort to retain their junior workforce.

Citi's co-head of North America investment banking, David Friedland, expressed disappointment at the fact that private equity firms are interviewing so early in a banker's career, stating that it is hard for young professionals to make a choice to go into another field in their first month on Wall Street.