Citigroup Gives CEO Corbat a Big Raise, Up 48% to $23 Million
February 16 2018 - 09:43AM
Dow Jones News
By Christina Rexrode
Citigroup Inc. Chief Executive Michael Corbat is getting a big
pay raise, a signal that the board supports his efforts to guide
the firm past its crisis-era stumbles.
Mr. Corbat is expected to receive total compensation of $23
million for 2017, according to a regulatory filing from the bank
Friday. That is a 48% increase from the previous year, when he
received $15.5 million.
Citigroup posted a loss of $6.2 billion for 2017, though that
was because of a one-time charge the bank had to take to prepare
for the new tax law. The board said it had considered Citigroup's
underlying results, as well as the bank's increased shareholder
dividends and its passing grade on the Federal Reserve's stress
test.
Mr. Corbat's salary will remain at $1.5 million. He will get a
cash bonus of $6.45 million. The rest of the package comprises
stock that is dependent on the bank's performance. This is also
deferred, meaning it will be paid out over coming years. That
structure is meant to tie Mr. Corbat's compensation to the bank's
longer-term performance.
His compensation is an about-face from last year, when the board
cut his pay because of "the firm's performance relative to its
financial targets."
The board said Mr. Corbat had demonstrated "exceptional
leadership in multiple critical areas," including risk management
and talent management. It also said it considered the pay of CEOs
at peer institutions.
Other big banks have also given 2017 pay raises to their CEOs,
though by smaller proportions. Mr. Corbat's pay raise puts him on
par with Goldman Sachs Group Inc.'s Lloyd Blankfein, who was paid
$24 million, and Bank of America Corp.'s Brian Moynihan, who was
paid $23 million. Morgan Stanley's James Gorman was paid $27
million, and JPMorgan Chase & Co.'s James Dimon was paid $29.5
million.
Wells Fargo & Co. hasn't yet disclosed its CEO pay
package.
Write to Christina Rexrode at christina.rexrode@wsj.com
(END) Dow Jones Newswires
February 16, 2018 09:28 ET (14:28 GMT)
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