Citi Moving Fixed-Income to U.K.
NEW YORK - Citigroup Inc.'s Salomon Smith Barney unit said Tuesday that it was relocating its global fixed-income sales and research division to London.The move, which would make it the first U.S. firm to base its operations in Europe, was prompted partly by Citigroup's pending acquisition of the investment banking operations of Schroders PLC of London and partly by the changing marketplace, company officials said.
"Our fixed-income business has become increasingly global due to changing trends in capital raising, as well as the anticipated creation of Schroders Salomon Smith Barney," said Steve Bowman, global head of fixed-income sales and research at the firm. "Our clients can capitalize on a growing number of cross-border opportunities by tapping into the resources, relationships, and expertise of Citigroup's corporate and investment banking activities around the world."
As part of the shift, Mr. Bowman will be moving from New York to London.
Salomon has made a number of moves in recent months aimed at increasing its presence in Europe. The firm recently established sales offices in Italy and Germany, and transferred sales staff to offices in Dublin, Madrid, Lisbon, and Paris. It also recently attained primary dealer status for government securities in France, Portugal, Spain, the Netherlands, Sweden, and Finland.
The firm has primary dealer status in 11 European counties.
First Tenn. CEO's Pay Rose 13% in '99
MEMPHIS - Ralph Horn, chairman and chief executive officer of First Tennessee National Corp., received about $1.24 million in salary and bonus in 1999, about 13% more than in 1998.Mr. Horn also got $1.1 million in restricted stock awards last year, according to the proxy statement filed by the company with the Securities and Exchange Commission on Tuesday. It was the first year in the last three that restricted stock was awarded to senior managers.
J. Kenneth Glass, president of retail banking at the $18 billion-asset company, got $688,159 in salary and bonus, and John C. Kelley Jr. received $681,274. Mr. Glass received $590,214 in 1998, while Mr. Kelley got $608,785 that year.
Shares of First Tennessee plunged 30% in a single day this month when the company warned that rising interest rates would cause first-quarter profits to fall short of Wall Street estimates. The company earned $243 million in 1999, an increase of 8% over 1998.
- Louis Whiteman
Bank of N.Y. Buying Harris' Trust Business
NEW YORK - Bank of New York Co. said Monday that it would buy the corporate trust business of Chicago-based Harris Trust.The deal, for undisclosed terms, includes 1,700 trustee and agency appointments and key market positions in corporate debt, asset-based securities, and municipal bonds, the company said. Bank of New York said it would expand its existing Chicago offices to accommodate the hiring of Harris Trust's account managers. Harris is owned by Bank of Montreal