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Citigroup reduced the bonuses by 250 top employees under the program that tied their salary to a turnaround, aimed at boosting shareholders and fixing the disadvantages of compliance in the US bank.
The so -called City transformation Bonus program It was established three years ago to encourage high staff to strengthen the group’s financial performance and improve risk and control systems by AN AN Order by regulators Take action after high -profile errors in which a $ 900 million winger random to a group of hedge funds.
City Paid 53 % of the target amount of employees entitled to the program in 2024, the third and last year, according to the bank’s submissions on Tuesday. This decreased by 94 % in 2022 and 80 % in 2023.
Payment in 2024 was reinforced with an upward line related to the total shareholders’ yields throughout the life of the bonus program, which took the total “transformation bonus” for the year up to 68 %.
The criteria for the amount of payment include the delivery of the goals set out by the bank’s audit team and “timely execution” of a remediation plan, prepared in response to the consent order, agreed by the lender and the Federal Reserve in 2020, City said.
The bank’s compensation committee does not expect to continue the bonus program, according to Tuesday’s submission.
In City’s current operational problems, the bank was fines with $ 136 million In September, US regulators for failing to fix the long -term problems in risk control and data management. Also credited the customer’s account with 81 so -called Last year, when only 280 USD was to be sent – a mistake that was reversed 90 minutes later and classified by the bank as “Blind Miss”.
The salary of Chief Executive Officer Janeein Fraser increased by 33 % to $ 34.5 million in 2024. She was not qualified for a transformation bonus, which opened for about 250 top employees. Chief of Chief Mark Mason’s salary rose 13 % to $ 15.1 million.
Fraser tried to solve the long -standing operational and profitable challenges of City with a dramatic bank’s reorganization, laying down thousands of employees and making a few high -profile jobs, including Vis RagavanBanking Head.
Ragavan, who joined JPMorgan Chase last year and started operating in June alone, was paid $ 22.6 million from his new employer in 2024, giving him the second highest salary among executives whose salary was disclosed in Tuesday.
City’s profit increased by 37 % last year to $ 12.7 billion. But the return of the bank of material capital, a key measure of profitability, was only 7 %, less than 2026 from 10 % to 11 % and far behind peers, such as JPMorgan.
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