Citigroup Inc. and Bank of America Corp. said Friday they have reduced the 2020 salary of their CEO.
At Citigroup, the bank cut Michael Corbat’s salary by 21% to $ 19.04 million, citing a consent order that regulators struck the bank in October. For the same reason, the bank reduced the payment of other managers and said that they share the responsibility for the problems. In the order, issued in October, regulators urged Citigroup to rectify its risk management systems and indicate ‘significant ongoing deficits’.
The salary of mr. Corbat included a salary of $ 1.5 million, a cash bonus of $ 5.26 million and $ 12.27 million in share-based compensation.
The board said the bank’s financial results in the pandemic were strong. However, the risks and controls of the bank are one of the four performance pillars that the remuneration of mr. Corbat determined.
Mr. Corbat will retire from the country’s third largest bank at the end of the month. He will be succeeded by Jane Fraser, the bank’s president and the first woman to lead a major Wall Street bank.