Citigroup Technology will invest $16.1 million to create 510 jobs in Charlotte over the next three years for a new hub location to expand its technology development and related operations.
The new jobs for the subsidiary of the third-largest U.S. bank will pay a minimum annual salary of $131,832 a year, almost 52% higher than the current average Mecklenburg County annual wage of $86,830. The jobs will include finance, human resources support, risk management, client credit, personal banking, compliance and private bank wealth management positions. The current average annual salary is $86,830.
The state’s Economic Investment Committee, part of the N.C. Department of Commerce, awarded Citigroup a Job Development Investment Grant (JDIG) of more than $8.9 million over 10 years. Training from the N.C. Community College System and Workforce Solutions totals about $2 million for the company. Mecklenburg County and the city of Charlotte incentives total about $375,000. Because Mecklenburg County is a Tier 3 county, the Economic Investment Committee also awarded about $2.9 million to the state’s Utility Fund to help more economically stressed parts of the state.
State and local incentives will not be paid unless Citigroup hits investment, job creation and wage targets. Citigroup expects to complete its investment by Dec. 31, 2027, and start hiring this year. Citigroup also must retain 385 jobs already in the state. Citigroup employs 469 workers in North Carolina, about half working remotely and 238 reporting to coworking spaces.
New York City-based Citigroup also considered Jacksonville, Florida, for the site, but chose Charlotte based on lower operating costs and discretionary incentives, according to the state. Jacksonville and Charlotte often compete for financial services jobs because of the large populations of experienced sector workers in both areas. Citigroup already has a hub in Jacksonville.
After many years of operating as the nation’s largest bank, Citibank ranks behind JP Morgan Chase and Charlotte-based Bank of America in size, based on assets. The three companies, along with Wells Fargo, are considered “too big to fail” U.S. megabanks, with stringent federal oversight of their operations.
Citigroup attempted to acquire Charlotte-based Wachovia during the financial crisis in 2008, but federal officials selected a rival bid from San Francisco-based Wells Fargo.