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Citigroup CEO Corbat earned 10% less in 2014
[NEW YORK] Citigroup Inc cut its chief executive Michael Corbat's annual compensation by 10.3 per cent in 2014, citing high legal expenses and the company's failure to win regulatory approval for its capital plan last year.
Mr Corbat's earned a total of US$13 million for 2014, down from US$14.5 million a year earlier, according to the compensation approved by Citi's board.
His pay package includes deferred stock of about US$3.5 million under Citi's compensation plan, which was overhauled two years ago amid shareholder pressure.
Mr Corbat was paid US$14.5 million in 2014, down from US$17.6 million the year before, under a format prescribed by the US Securities and Exchange Commission.
The CEO has been trying to increase profitability at the bank by scaling back its sprawling operations, built through a series of acquisitions since the 1980s.
Citi, like other big banks, has turned to cost cuts to boost profit, as low interest rates and new regulations have crimped revenue growth. But these efforts have been overshadowed by multibillion-dollar fines and higher costs for technology and compliance.
The bank raised its quarterly dividend and announced plans to buy back US$7.8 billion of stock over five quarters after it cleared the Federal Reserve's annual stress test last week.
Citi failed the stress tests in 2012 and 2014.
Chief Financial Officer John Gerspach's total compensation for 2014 was unchanged at US$7.5 million, according to the filing. Manuel Medina-Mora, who heads Citi's global consumer banking arm but will retire in June, received US$9.5 million for 2014.
Bank of America Corp cut Chairman and Chief Executive Brian Moynihan's pay by 7 per cent in 2014, a source familiar with the matter told Reuters last month.
In contrast to Mr Corbat and Mr Moynihan, JPMorgan & Co Chief Executive Jamie Dimon earned US$20 million in 2014, unchanged from a year earlier. Mr Dimon's pay package included a first cash bonus in three years.