Citigroup Inc. and Bank of America Corp. they said on Friday that they had reduced the pay of their CEOs by 2020.
At Citigroup, the bank cut executive chief Michael Corbat’s pay by 21% to $ 19.04 million, citing a consent order that regulators slapped the bank in October. The bank reduced the pay of other executives for the same reason, saying they shared responsibility for the problems. In the order, issued in October, regulators told Citigroup to fix its risk management systems and marked “significant shortcomings in progress.”
Mr. Corbat’s pay included a salary of $ 1.5 million, a cash bonus of $ 5.26 million and compensation for shares of $ 12.27 million.
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 nation’s third-largest bank. He will be succeeded by Jane Fraser, president of the bank and the first woman to run a major Wall Street bank.