Citigroup (C) CEO Corbat's 2019 Compensation Kept Stable
Zacks Investment Research | Feb 18, 2020 06:39AM ET
Citigroup’s (NYSE:C) chief executive officer (CEO) — Michael Corbat — did not receive any pay hike in his total compensation package. His annual salary for 2019 has been kept unchanged at $24 million, in line with 2018, according to a Securities and Exchange Commission (SEC) filing.
The CEO’s pay package includes a base salary of $1.5 million, cash bonus of $6.75 million, equity awards of about $7.9 million and a long-term performance-based pay of $7.9 million for 2019. In 2019, the CEO beat the financial targets by achieving tangible return on common equity, or ROTCE — a key profitability ratio — of 12.1%, above the target of 12%. Moreover, Corbat’s extraordinary leadership quality, CEO package of other peer banks and Citigroup’s strong operating performance in the year were taken into consideration.
The company’s net income climbed to $19.4 billion in the year, up 8% year over year. Further, the bank reported revenues of $74.3 billion, up 2% year over year.
Notably, in the stress test results for 2019, Citigroup emerged triumphant. The company not only managed to clear the test but outperformed other major banks as well. In its 2019 capital plan, Citigroup received approval for $17.1 billion worth of share repurchases for the four quarters, beginning Jul 1, 2019 and a 13.3% dividend hike.
Citigroup was steadily active in deploying capital in 2019 and investors’ concerns subsided on subdued macroeconomic factors. Therefore, the company's share price appreciated 17.2% in the year compared with 17.6% growth registered by the Zacks Investment Research
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