USA: Citigroup pays out $33m over sex discrimination

Citigroup has agreed to pay out $33m (£16.5m) to settle sex discrimination claims against its Smith Barney brokerage unit.

The lawsuit was originally filed by three female brokers in its Santa Rosa office in California.

Protesters outside the Citi building in 1999. Around 2,500 women will now be eligible to share in the compensation fund

But after the suit was granted class action status, around 2,500 women will now be eligible to share in the compensation fund.

Under the settlement, Citi also agreed to change policies for distributing accounts, bonuses, partnerships, leads and other types of compensation.

"Citigroup's slogan is 'Let's get it done'. My attitude is it's about time that they get it done," said Renee Fassbender-Amochaev, one of the three lead plaintiffs.

"I feel we have levelled the playing field for the women who remain at Smith Barney and who may come into this industry in the future."

The settlement, which must still be cleared with a San Francisco district judge, is the largest since Morgan Stanley paid out $54m in 2004 to settle similar sex discrimination claims.

The three women, Deborah Orlando, Kathryn Varner and Ms Fassbender-Amochaev, worked as financial consultants at Smith Barney but have since left to work for Wachovia Securities.

They alleged Smith Barney branch managers steered clients to male brokers, reducing the potential earnings of female employees.

They also claimed Smith Barney did not provide enough opportunities to become partners.

The women contended they received less sales support than male colleagues, less desirable offices and less training.

"We made a complaint and they didn't want to listen," Ms Orlando said. "We are very, very happy with the outcome and feel the evidence showed what was going on."

Citigroup said it was pleased to put the matter behind it

"Significant initiatives in the past several years have helped establish Smith Barney as one of the most progressive employers in the securities industry and we are committed to continuing to provide a professional and respectful work environment to all of our employees," said a spokesman.

The average payout - to be shared out next year - would be $13,200 if shared equally, but many of those involved will receive much more based on seniority and some may opt out or not seek payment, said Kelly Dermody, lead attorney for the women.

The lawyers will receive $6.5m of the $33m, she said.

Telegraph