Citigroup Inc. and Bank of America Corp. said Friday they had slashed their CEOs’ 2020 pay.
At Citigroup, the bank cut Chief Executive Michael Corbat’s pay 21% to $19.04 million, citing a consent order that regulators slapped on the bank in October. The bank reduced other executives’ pay for the same reason, saying they shared responsibility for the problems. In the order, issued in October, regulators told Citigroup to fix its risk-management systems and flagged “significant ongoing deficiencies.”
Mr. Corbat’s pay included a $1.5 million salary, a $5.26 million cash bonus 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 compensation.
Mr. Corbat will retire at the end of the month from the nation’s third-biggest bank. He will be succeeded by Jane Fraser, the bank’s president and the first woman to lead a major Wall Street bank.