'Failures' at Citigroup cited in CEO pay cut as he heads for the exit
Bank of America CEO hit too as more big bank bosses see compensation chopped
Citigroup Inc said late on Friday that outgoing Chief Executive Officer Mike Corbat's compensation for 2020 would be $19 million, a 21% decrease from 2019, according to a regulatory filing.
Company directors reduced Corbat's incentive pay for his failures to efficiently address the risk and control concerns of regulators, the bank said in a filing.
JPMORGAN'S DIMON SEES NO PAY RAISE
In October, the bank agreed to pay a $400 million penalty and draw up a sweeping remediation plan after U.S. regulators identified “several longstanding deficiencies” and operational lapses following an "error" that caused the bank to mistakenly distribute nearly $1 billion of its own funds.
Shortly after, the bank announced Corbat would retire earlier than expected and the bank would boost investment in its operational systems by $1 billion.
Incoming CEO Jane Fraser has highlighted improving risk and control systems as a priority.
Additionally, members of the board considered the bank’s 2019 operating performance, market levels of pay for the CEO role at peer institutions, and Corbat’s leadership while deciding his compensation, according to the filing.
The total is comprised of $1.5 million in base salary and an incentive award of $17.5 million.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| C | CITIGROUP INC. | 70.16 | +0.42 | +0.60% |
| BAC | BANK OF AMERICA CORP. | 47.76 | +0.03 | +0.05% |
| WFC | WELLS FARGO & CO. | 77.20 | -0.17 | -0.22% |
| JPM | JPMORGAN CHASE & CO. | 249.76 | -0.14 | -0.06% |
| GS | THE GOLDMAN SACHS GROUP INC. | 605.42 | +0.18 | +0.03% |
| MS | MORGAN STANLEY | 131.20 | -0.06 | -0.05% |
Elsewhere on Wall Street banks showed restraint in executive compensation to reflect the financial impact of the coronavirus pandemic.
Bank of America Corp reduced CEO Brian Moynihan's pay by more than 7%, and Wells Fargo & Co CEO Charlie Scharf’s pay dropped 12% in 2020. JPMorgan Chase & Co held CEO Jamie Dimon’s annual pay flat.
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Goldman Sachs Group Inc CEO David Solomon’s pay tumbled by 36%, reflecting the bank’s role in Malaysia’s 1MDB scandal.
Morgan Stanley stood out among the top 6 U.S. bankers in increasing pay. CEO James Gorman saw his pay jump 20%.