Citigroup Inc. and Bank of America Corp. said on Friday they cut their CEOs’ wages to 2020.
At Citigroup, the bank cut chief executive Michael Corbat’s salary by 21% to $ 19.04 million, citing an consent order that regulators imposed on the bank in October. The bank cut other executives’ salaries for the same reason, saying they shared responsibility for the problems. In the order, issued in October, regulators told Citigroup to correct its risk management systems and signaled “significant continuing deficiencies”.
Mr. Corbat’s payment included a salary of $ 1.5 million, a cash bonus of $ 5.26 million and $ 12.27 million in stock-based compensation.
The board said the bank’s financial results in the pandemic were strong. However, the bank’s risks and controls are one of the four “performance pillars” that determine Mr. Corbat’s compensation.
Corbat will retire at the end of the month from the country’s third largest bank. He will be succeeded by Jane Fraser, the bank’s president and the first woman to lead a large Wall Street bank.