Citigroup Considers Pay Cuts, Clawbacks After Fraud Hits Banamex
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Citigroup Inc., the third-largest U.S. bank, will consider clawing back compensation or shrinking 2014 pay for any employees linked to a $400 million loan fraud at its Banamex unit in Mexico.
The loss hasn’t yet prompted Citigroup to change 2013 awards to its highest-ranking and best-paid leaders, as an internal review is still in an early stage, the bank said yesterday in a regulatory filing. While the fraud was just uncovered last month, the firm said it did shrink pay 14 percent for Manuel Medina-Mora, a co-president who oversees the Mexico unit, as it considered “control issues” identified last year in Banamex’s U.S. operations.