Citigroup (C) CEO Corbat's Compensation Hiked By 48% In 2017
Zacks Investment Research | Feb 19, 2018 07:58AM ET
Citigroup’s (NYSE:C) chief executive officer (CEO) - Michael Corbat - received about 48% pay hike in his total compensation package. His annual salary has been increased to $23 million in 2017 from $15.5 million in 2016, according to a Securities and Exchange Commission (SEC) filing last week.
The CEO’s pay package includes a base salary of $1.5 million, cash bonus of $6.5 million and $15 million deferred incentives for 2017. Though the CEO failed to meet the financial targets of achieving tangible return on common equity, or ROTCE — a key profitability ratio — to 10% within two years, Corbat’s extraordinary leadership quality and Citigroup’s strong operating performance in the year led to the hike.
The company’s net income climbed 6% to $15.8 billion in 2017, excluding impact of the tax reform. However, including the impact of the tax reform, the company reported a net loss of $6.2 billion. Moreover, the company reported revenues of $71.4 billion, up 2% year over year.
Notably, in the stress test results for 2017, Citigroup emerged triumphant. The company not only managed to clear the test but outperformed other major banks as well. In its 2017 capital plan, Citigroup received approval for $15.6 billion worth of share repurchases for the four quarters beginning third-quarter 2017 and 100% dividend hike.
All positive factors have caused investors to become optimistic about Citigroup's long-term prospects. Notably, the company's share price appreciated roughly 25.2% in 2017, outperforming 18.8% growth registered by the Zacks Investment Research
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