The CEO for Citigroup Inc. has received a salary increment of 27% bringing his salary to $16.5 million for 2015 after the bank recovered profits and also managed to complete the Federal Reserve’s annual stress test, following its failure in 2014.
The filing on Thursday revealed that the 55 year old CEO, Mike Corbat, received $4.5 million in deferred stock and an equivalent sum of shares fixed to future performance. Corbat also received a monetary reward worth $6 million in addition to a $1.5 million salary. Jamie Forese, the company’s president also received performance shares and deferred stock estimated at $9.3 million coupled with a cash gratuity of $6.2 million, according to the filing and information from Citibank’s previous compensation report.
Last year saw the bank report the highest profit of $17.2 billion since 2006, which was attributed to the sale of assets and restriction of expenses that were implemented by Corbat and aimed to better the returns of the firm.
The bank received a passing rate from the Fed to pay back principal amounts owed to shareholders in 2015, after having being unsuccessful in the annual stress test the year prior. The CEO also managed to achieve the 2015 ROA goal which set the firm’s efficiency ratio down to the top end of his set target.
The compensation board stated in the filing that they “considered Citi’s solid operating performance in 2015 and progress towards Citi’s financial targets and the execution priorities Mr. Corbat has established… Citi has continued to become a simpler, smaller, safer and stronger bank under Mr. Corbat’s leadership.”
Citibank, which is well remembered for its steering role in the period of international megabanks just before its near collapse during the fiscal crisis and is the U.S’ fourth largest lender by assets, taking its position just after the Wells Fargo & Co., had its shares decline by 4.4 percent last year and has dropped by 25 per cent this year.
Other banks that rewarded their CEO include the Bank of America Corp. which gave Brian T. Moynihan $16 million in salary, bringing his possible pay up by 23 per cent, while Jamie Dimon CEO and chairman of Chase & Co., received a 35 per cent totalling, $27 million.
However, several other executives of major banks had their salaries axed for the same year as they struggled with missed targets coupled with dwindling stock prices. James Gorman, CEO of Morgan Stanley had his pay reduced by a significant 6.7 per cent to $21 million and Goldman Sachs Group Inc. also axed CEO, Lloyd C. Blankfein’s payout by 4.2 percent to $23 million.