Citigroup gives boss Michael Corbat a 48 per cent pay rise to $23m
Citigroup boss Michael Corbat received a 48 per cent raise last year, with his annual compensation rising to $23m (£16.4m).
During 2017, Citigroup’s stock increased by 25 per cent and profits rose four per cent. The company fell short of earlier financial targets, but directors considered recent progress towards new targets when setting Corbat’s pay, according to a public filing.
The group booked a $22bn charge from Donald Trump’s tax reforms. Banks with earnings overseas have been forced to account for a fundamental change to the way in which the US taxes profits.
A tax credit for deferred losses was reduced by $19bn for Citi, while it took another $3bn hit on profits held abroad, a key target of the Trump administration.
Corbat’s annual compensation was cut six per cent to $15.5m the previous year after the bank missed financial performance targets and one-third of its voting shareholders voted against his prior pay.
When investors contested his 2016 pay package, the bank changed its pay plan.
In January, Corbat raised concerns around global financial stability during a speech at Davos.
He said continued asset price rises have given investors a “numbness” and “ambivalence” to usually market-moving events.
“When the next turn comes – and it will come – it’s likely to be more violent than it would otherwise be if we let some pressure off along the way,” Corbat said.