Citigroup Inc. and Bank of America Corp. said on Friday that they had reduced their salaries for executives by 2020.
At Citigroup, the bank reduced chief executive Michael Corbat’s salary by 21% to $ 19.04 million, citing a consent order that regulators hit the bank in October. The bank has cut the salaries of other executives for the same reason, saying they share responsibility for the problems. In an order issued in October, regulators told Citigroup to remedy its risk management systems and reported “significant shortcomings in progress”.
Mr. Corbat’s salary included a salary of $ 1.5 million, a cash bonus of $ 5.26 million and $ 12.27 million in stock compensation.
The council said the bank’s financial results in the event of the pandemic were strong. However, the bank’s risks and controls are one of the four “performance pillars” that determine Mr Corbat’s compensation.
Mr. Corbat will retire at the end of the month from the third largest bank in the nation. He will be succeeded by Jane Fraser, the bank’s president and the first woman to lead a major Wall Street bank.