Citigroup Keeps CEO Michael Corbat's Pay at $24 Million
February 14 2020 - 5:19PM
Dow Jones News
By David Benoit
Citigroup Inc. said Friday it would pay Chief Executive Officer
Michael Corbat $24 million for 2019, unchanged from the previous
year.
The bulk of Mr. Corbat's pay is in two sets of stock-based
compensation that totaled $15.75 million for 2019. He was also
given a $6.75 million cash bonus. His base salary, $1.5 million,
has been steady since he was promoted to CEO in 2012.
Mr. Corbat has said the bank is making steady progress toward
higher profitability. In 2019, the bank's revenue rose 2% and
profit rose 8%. The stock soared 50%, outpacing rivals in the KBW
Nasdaq Bank Index.
Analysts and investors focus on Citigroup's profitability, which
has improved in recent years but still trails other big banks.
Citigroup said last month its return on tangible common equity,
which measures the profitability of its assets, was 12.1% for the
full year, better than the 12% the bank had targeted. Analysts,
though, said the figure would have fallen short if not for a
tax-related boost on some assets, and Citigroup lowered its 2020
target.
Mr. Corbat over the past seven years has focused on simplifying
the bank and expanding its revenue from current customers and its
consumer bank. It has successfully moved beyond the worst of its
financial crisis-era losses and regulatory problems, but now
investors are seeking more signs of growth.
Several of Citigroup's top executives left over the past year,
including the head of the consumer bank, the head of the investment
bank and the finance chief. Mr. Corbat named longtime executive
Jane Fraser as company president and head of the consumer bank, a
move that puts her among his top potential successors.
Three other big U.S. banks have disclosed 2019 pay for their
CEOS. James Dimon at JPMorgan Chase & Co. got a bump to $31.5
million; James Gorman at Morgan Stanley was cut to $27 million.
Bank of America Corp. kept Brian Moynihan's pay at $26.5
million.
Write to David Benoit at david.benoit@wsj.com
(END) Dow Jones Newswires
February 14, 2020 17:04 ET (22:04 GMT)
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