Bonus Watch '15: Citi CEOs

The board has decided Corbat did a 10 percent shittier job last year than in 2013.
Author:
Publish date:

Apparently Citi CEOs fared slightly worse than Bank of America CEOs and considerably worse than JP Morgan CEOs in 2014.

Citigoup cut Chief Executive Michael Corbat's pay by about 10 percent in 2014, a year in which the bank's profit nearly halved due to higher legal costs and a slump in bond trading...Corbat earned an estimated $13.1 million in 2014, including deferred shares worth about $3.49 million based on the stock's Thursday close. He earned $14.5 million in 2013. Deferred stock makes up 30 percent of Corbat's bonus pay under Citi's compensation plan, which was overhauled two years ago amid shareholder pressure. Bank of America Corp cut Chairman and Chief Executive Brian Moynihan's pay by 7 percent in 2014, a source familiar with the matter told Reuters. In contrast to Moynihan and Corbat's smaller pay packages, JPMorgan & Co (JPM.N) Chief Executive Jamie Dimon earned $20 million in 2014, unchanged from a year earlier.

Citigroup cut CEO Corbat's pay by 10 percent to $13.1 million in 2014 [Reuters]

Related

Bonus Watch '12: Retired Citigroup CEOs

Uncle Vik may or may not be getting a little something extra in his stocking, depending on how generous Citi is feeling. Vikram Pandit, who stepped down yesterday as Citigroup’s chief executive officer, stands to forfeit almost $33 million in cash and stock from a retention package unless the board gives him a payout to ease his exit. Citigroup formulated a plan last year that, based on the firm’s performance so far, would have given Pandit $19 million through a profit-sharing agreement, deferred stock now valued at $9 million and $4.6 million in options, according to the terms of a May 2011 regulatory filing and data compiled by Bloomberg. The plan required Pandit, 55, to be employed at the bank through various payment dates, most of which haven’t been reached. It’s typical for CEOs who resign to forfeit previously negotiated severance and to work out an alternative payout agreement with the board, said Steven Hall, managing director of Steven Hall & Partners, a New York-based executive compensation consulting firm. Pandit getting nothing would signal that “he stood up and said, ‘I’m resigning,’” Hall said. If he gets a payout, “then the question is, did they give him that in order to smooth the path to his resignation or termination? Or did they look at him and say, ‘You know what, you did a hell of a good job during a very, very rough time, we’d like to do something nice for you,’” Hall said. Pandit Could Forgo $33 Million as Exit Voids Retention Plan [Bloomberg]