Citi to boost pay for women and minorities, closing gaps in the U.S., UK, and Germany

Citigroup will boost job compensation for women and minorities in a bid to close pay gaps in the U.S., United Kingdom, and Germany, becoming the first U.S. bank to respond to shareholder pressure about the inequalities.

The New York-based financial company announced the effort Monday, saying it came after a Citigroup compensation assessment in the three countries found that women on average were paid 99% of what men got and minorities on average received 99% of what non-minorities were paid.

"As part of this year's compensation cycle, we are making appropriate increases to help close the gaps for women and U.S. minorities," Michael Murray, Citigroup's head of human resources, said in a Monday blog post. "We will also adjust compensation for other individuals where the analysis determined increases were warranted."

Citigroup's action prompted investment advisory company Arjuna Capital to withdraw the 2018 gender pay shareholder proposal it had filed in an effort to force an investor vote that would require the bank to address pay inequality.

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No other U.S. bank has taken similar action, Arjuna said. Along with Citigroup, Arjuna said it had filed gender pay shareholder proposals this year with U.S. banks JPMorgan Chase, Wells Fargo, Bank of America and Bank of New York Mellon. The investment adviser said it had filed similar proposals with American Express, Mastercard, Reinsurance Group, and Progressive Insurance. 

If approved by shareholders, the proposals would require the companies to publish their policies and goals to reduce gender pay gaps.

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In 2016, women employed in securities, commodities and financial services jobs received 65.2% of what their male colleagues earned, according to data from the Bureau of Labor Statistics and Census Bureau's Current Population Survey.

"This is a tipping point for Wall Street banks," Natasha Lamb, Arjuna's managing partner, said in a formal statement about Citigroup's action. "We expect women will not only receive the pay they deserve at Citi, the company will reap the benefits of talent acquisition and retention so that more women can move into leadership. Other leading banks can either follow Citi's example ... or risk further laggard status on issues of concern to women."

Although Arjuna's shareholder proposals focus on U.S. banking and financial corporations, compensation equality for women and minorities has long been an issue across virtually all business sectors.

Most recently, widespread public comment and diverging opinions emerged over the disclosure that actress Michelle Williams was being paid less than one-tenth of 1% of what actor Mark Wahlberg commissioned for reshoots of the movie "All the Money in the World."

Separately, an Iceland law that took effect Jan. 1 makes equal pay for equal work mandatory in the northern European nation, regardless of gender, ethnicity, sexuality or nationality. 

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc