Unlock the digestive of free editor
Roula Khalaf, the FT editor, chooses her favorite stories in this weekly newsletter.
Citigroup has reduced rewards to 250 senior employees under a program that linked their salary for a turning effort aimed at increasing shareholders’ return and increasing compliance deficiencies in the US Bank.
The so -called CITI transformation bonus program was created three years ago to stimulate old staff to increase group financial performance and improve its risk and control systems after an order from regulators to take action after a high profile error in which it accidentally linked $ 900 million for a group of protective funds.
Citi paid 53 percent of the target amount for employees who are eligible for the program in 2024, the third and last year of it, according to bank records on Tuesday. This decreased from 94 percent to 2022 and 80 percent to 2023.
The 2024 payment was strengthened by an increase linked to the total return of shareholders during the life of the bonus program, which received the total “transformation bonus” for the year at 68 percent.
The criteria for the amount of salary included the distribution of the objectives set by the bank audit team and the “timely execution” of an adjustment plan drafted in response to an order agreed by the lender and federal reserve in 2020, Citi said.
The Bank Compensation Committee does not expect to continue the bonus program, according to Tuesday’s submission.
In a sign of Citi’s ongoing operational issues, the bank was fined $ 136 million in September by US regulators for failure to correct long problems in risk control and data management. He also credited an account of a client with 81tn $ last year when he meant to send only $ 280 – a mistake returned 90 minutes later and was classified by the bank as a “Miss near”.
Chief Executive Officer Jane Fraser’s Pay rose 33 percent to $ 34.5 million in 2024. It was not eligible for the transformation bonus, which was open to about 250 senior employees. The salary of Finance Chief Mark Mason increased 13 percent to $ 15.1 million.
Fraser has sought to address the long operational and benefit challenges of the bank with a dramatic reorganization of the bank, raising thousands of employees and doing some high -profile employment, including Vis Raghavan, Head of Banks.
Raghavan, who joined JPMORGAN Chase last year and started working only in June, was paid $ 22.6 million by his new employer in 2024, giving him the second highest salary among the executives whose payment was discovered in Tuesday’s records.
Citi profits increased 37 percent last year to 12.7bn $. But the return of the bank to the tangible equity, a major amount of profitability, was only 7 percent, short of its 2026 target from 10 percent to 11 percent and many behind peers like JPMORgan.
