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Citigroup chief's 2019 compensation unchanged at S$24m

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Citigroup Inc kept its chief executive officer (CEO) Michael Corbat's 2019 compensation unchanged at US$24 million, according to a regulatory filing on Friday.

[NEW YORK] Citigroup Inc kept its chief executive officer (CEO) Michael Corbat's 2019 compensation unchanged at US$24 million, according to a regulatory filing on Friday.

Corbat's total compensation included a base salary of US$1.5 million plus cash bonuses of about US$6.75 million, equity awards of nearly US$7.9 million, and a long-term performance based pay worth US$7.9 million. 

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.

For 2019, Citigroup reported returns on tangible common equity of 12.1 per cent, beating its 12 per cent target.

Though the biggest US banks largely reported a year of strong top and bottom line growth, executive compensation remained subdued as bank boards have become more cost-conscious reflecting a weaker revenue outlook.

Morgan Stanley's board made the rare move of cutting CEO James Gorman's pay by 7 per cent to US$27 million for 2019 in an effort to reduce expenses.

Bank of America Corp CEO Brian Moynihan's pay package was flat from a year ago and JPMorgan Chase & Co's board gave CEO Jamie Dimon just a half-million-dollar raise, following a US$2 million dollar raise the year before.

A year earlier, Mr Corbat enjoyed a 4.35 per cent raise, bringing his total compensation for 2018 to US$24 million. In 2018, the bank exceeded its goal for returns on investment but fell short of its efficiency target due to revenue pressure at the end of the year. 

REUTERS