Citigroup Inc. and Bank of America Corp. said Friday that they had cut their CEO’s salary in 2020.
At Citigroup, the bank cut Chief Executive Michael Corbat’s salary by 21% to $ 19.04 million, citing a consent warrant slammed by regulators on the bank in October. For the same reason, the bank cut the wages of other executives and said they shared responsibility for the problems. In the order, issued in October, regulators told Citigroup to resolve its risk management systems and flagged “significant ongoing deficiencies.”
Mr. Corbat’s salary 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 remuneration.
Mr. Corbat will retire from the third largest bank in the country at the end of the month. He will be succeeded by Jane Fraser, the bank’s president and the first woman to run a major Wall Street bank.