Citigroup Lowers 2024 Bonuses for Regulatory Compliance
By Tatiana Bautzer
NEW YORK (Reuters) - Citigroup paid top executives smaller bonuses last year tied to results of the bank's turnaround and risk management fixes required by regulators, the bank's proxy filing on Tuesday showed.
The bonuses went to executive management committee members and 250 senior managers considered critical to execute changes required in 2020 by the Federal Reserve and the Office of the Comptroller of the Currency, the filing said. The group excludes CEO Jane Fraser.
In 2024 the committee paid 68% of the maximum bonus amount, which was not disclosed by the bank, lower than in the previous two years.
The percentage of completion of the milestones last year was 53%, below the 80% achieved in 2023 and the 94% rate achieved in 2022. The bank paid 68% in the third tranche because it added the total shareholder return of 15% in the three-year period.
In the proxy, Citigroup cited the decision by the Fed and OCC to fine the bank $136 million for failing to fix longstanding data issues, and said the bank has acknowledged not having made progress quickly enough.
The bank said these areas are in the performance metric categories and affected the third tranche of the bonus, which comprised 50% of the total award.
(Reporting by Tatiana Bautzer; Editing by Richard Chang)
