Citigroup Gives CEO Corbat a Big Raise, Up 48% to $23 Million

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 [e-mail]

(END) Dow Jones Newswires

February 16, 2018 09:28 ET (14:28 GMT)

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