Citigroup Inc., the third-largest U.S. bank, boosted Chief Executive Officer Michael Corbat’s compensation 25 percent to about $14.4 million for 2013, his first full year running the company.
He got 78,528 deferred shares valued at $3.88 million, based on the closing price Feb. 18, according to a filing yesterday to the U.S. Securities and Exchange Commission. He received about $5.17 million in a cash bonus, $3.88 million of performance share units and a $1.5 million salary, based on the bank’s description of his compensation plan last year.
Citigroup’s profit jumped 84 percent to $13.9 billion last year as Corbat, 53, boosted revenue and cut costs. The CEO’s package compares with $20 million for JPMorgan Chase & Co.’s Jamie Dimon and $14 million for Bank of America Corp.’s Brian T. Moynihan. Goldman Sachs Group Inc. gave Lloyd C. Blankfein $23 million, and hasn’t said yet whether he will get a long-term incentive granted in past years.
Corbat, who was named CEO in October 2012 after running the bank’s European operations, collected $11.5 million in total compensation for that year when the New York-based firm’s stock price rose 50 percent. Because of his split duties that period, his pay for 2013 may not be directly comparable to the earlier figures.
Citigroup’s shares rose 32 percent last year, trailing the 35 percent advance of the 24-company KBW Bank Index. Goldman Sachs climbed 39 percent, Bank of America gained 34 percent and JPMorgan rose 33 percent.
Citigroup’s compensation committee adopted a new pay plan last year after shareholders rejected the firm’s 2011 arrangement amid criticism that it let former CEO Vikram Pandit, 57, collect millions of dollars too easily. The committee is led by Chairman Michael O’Neill.
Under the plan outlined last February, 40 percent of Corbat’s incentive award is cash, with the rest split between deferred stock and the performance share units, or PSUs. The payout is linked to targets, with 70 percent tied to financial metrics and 30 percent based on strategic goals. Citigroup could report a different value for his compensation in its shareholder proxy, depending on how it prices his stock awards.
Citigroup’s PSUs will be paid after three years once the bank meets certain performance goals, according to last year’s filing. Executives will collect all of the PSUs if Citigroup achieves return on assets of 0.85 percent and produces a total shareholder return equal to or greater than the 50th percentile for eight firms including JPMorgan, Bank of America, Goldman Sachs and Deutsche Bank AG, the filing showed.
The bank also disclosed deferred-stock awards for other senior executives. Co-President James “Jamie” Forese, who oversees the unit serving institutions, received $4.03 million of shares, and co-President Manuel Medina-Mora, head of the consumer operations, got $2.67 million, according to separate filings. Brian Leach, head of franchise risk and strategy, got $2.54 million, while John Gerspach, the chief financial officer, received $2.09 million.
The deferred-stock awards vest over four years and can be canceled in the event of company losses, according to the filing.