Citigroup raised Chief Executive Michael Corbat’s pay by an estimated 27% in 2015, a year in which the bank’s profit more than doubled.
Corbat earned an estimated $16.5 million in 2015, including deferred shares worth about $4.5 million. He earned $13 million in 2014.
Deferred stock makes up about 30% of Corbat’s bonus pay under Citi’s executive compensation plan, which was overhauled three years ago amid shareholder pressure.
Citi’s net income more than doubled to $17.2 billion in 2015, its highest since 2006, as Corbat works through his plan to exit businesses where profits and prospects are not worthwhile.
Chief Financial Officer John Gerspach’s total compensation for 2015 rose about 20% to $9 million, the disclosures indicate.
James Forese, chief executive of Citi’s Institutional Clients Group, was paid $16 million, up 18.5% from a year earlier.
Citigroup joined two of Wall Street’s marquee investment banks in raising its chief executive’s pay for the year
Bank of America raised Chief Executive ‘s pay by 23% in 2015. JPMorgan Chase Chief Executive Jamie Dimon earned $27 million in 2015, up 35% from a year earlier.
However, two other banks cut the pay of their top bosses due to concerns of a global economic slowdown and falling oil prices.
Morgan Stanley cut Chief Executive James Gorman’s overall pay by 7% to $21 million in 2015, while Goldman Sachs Group counterpart Lloyd Blankfein’s pay declined 4% to $23 million.
The payout for Corbat and a few other executives can be estimated from regulatory filings made by the banks, and a pay formula that Citigroup has previously disclosed.
Citi, which recently slipped below Wells Fargo to become the third-largest bank by assets in the United States, has turned to cost cuts to boost profits as low interest rates and regulations around capital requirements have dragged revenue growth.
Total expenses at the bank fell more than 20% in 2015.
(Reporting by Sruthi Shankar and Lehar Maan in Bengaluru; Editing by Anil D’Silva)