Citigroup responded to anger about the size of its executive pay packages on Thursday by changing the way it calculates the bonuses given to top executives.
Starting with last year’s compensation, a portion of the bonuses paid out to Citi’s executives will now be linked to the company’s performance relative to that of other big banks.
Citi has been a prominent symbol in the debate over the scale of executive compensation on Wall Street. The changes announced Thursday come less than a year after Citigroup shareholders voted against a $15 million pay package for Vikram S. Pandit, then the bank’s chief executive.
After that vote, Citi’s chairman, Michael O’Neill, took the reins of a five-member group last April assigned to review executive pay. “When our shareholders spoke last year about Citi’s compensation structure, we listened,” Mr. O’Neill said in a regulatory filing.
The change in the compensation structure was prompted by a desire to “more strongly connects compensation with performance,” Mr. O’Neill said in the filing.
Nell Minow, a shareholder advocate at GMI Ratings, said that “it’s a huge step forward from terrible, which is what it was.”
Citi Changes Terms of Executive Bonuses
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Citi Changes Terms of Executive Bonuses
