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UPDATE 2-Citigroup slashes CEO's pay by 21%, to $19 million

Imani Moise
·2 min read

(Adds context, comparison to other top banks)

By Imani Moise

Feb 12 (Reuters) - Citigroup Inc said late on Fridaythat outgoing Chief Executive Officer Mike Corbat's compensationfor 2020 would be $19 million, a 21% decrease from 2019,according to a regulatory filing.

Company directors reduced Corbat's incentive pay for hisfailures to efficiently address the risk and control concerns ofregulators, the bank said in a filing.

In October, the bank agreed to pay a $400 million penaltyand draw up a sweeping remediation plan after U.S. regulatorsidentified “several longstanding deficiencies” and operationallapses following an "error" that caused the bank to mistakenlydistribute nearly $1 billion of its own funds.

Shortly after, the bank announced Corbat would retireearlier than expected and the bank would boost investment in itsoperational systems by $1 billion.

Incoming CEO Jane Fraser has highlighted improving risk andcontrol systems as a priority.

Additionally, members of the board considered the bank’s2019 operating performance, market levels of pay for the CEOrole at peer institutions, and Corbat’s leadership whiledeciding his compensation, according to the filing.

The total is comprised of $1.5 million in base salary and anincentive award of $17.5 million.

Elsewhere on Wall Street banks showed restraint in executivecompensation to reflect the financial impact of the coronaviruspandemic.

Bank of America Corp reduced CEO Brian Moynihan'spay by more than 7%, and Wells Fargo & Co CEO CharlieScharf’s pay dropped 12% in 2020. JPMorgan Chase & Coheld CEO Jamie Dimon’s annual pay flat.

Goldman Sachs Group Inc CEO David Solomon’s paytumbled by 36%, reflecting the bank’s role in Malaysia’s 1MDBscandal.

Morgan Stanley stood out among the top 6 U.S. bankersin increasing pay. CEO James Gorman saw his pay jump 20%.(Reporting by Imani Moise; Editing by Leslie Adler, DavidGregorio and Sonya Hepinstall)