(Bloomberg) – Citigroup Inc.
In the third annual installment payment, the Transformation Bonus Program pays 68% of the 2024 target to about 250 senior employees, according to a proxy document on Tuesday. By comparison, it was 94% in 2022 and 80% in the second year.
Payments are designed to link senior manager compensation to Citigroup’s advances in improving risk and control. The program aims to shift compensation with execution remedial plans, milestones in internal auditor reviews, and “cultural changes” identified by employee investigations.
The final batches different from the first two included a boost to Citigroup stock.
The backend of Citigroup has long been considered a weakness of Wall Street Bank, which has invested heavily in solving problems as part of a big remodel initiated by CEO Jane Fraser.
In July, regulators fined $136 million for their slow improvements in data quality management. The latest reports on the Botched account shifted the review of the bank’s backend controls. The bank still complies with the consent orders of the Federal Reserve and the Office of the Currency Master Calculator.
“Citi has acknowledged that despite significant progress in advancing transformation, including correcting consent orders, we have not made rapid progress in some areas, such as in data quality management related to governance and regulatory reporting,” the bank said in the document.
Last year, a group of anonymous former employees criticized the bonus plan in a letter to the flag board. The bank disputed the accuracy and framework of the letter at the time and said it was “made a difficult decision” to make further progress.
The bonus is Fraser’s salary increase by 33%, the biggest bump among the CEOs of the six largest banks in the United States. Fraser, who received a $34.5 million salary in 2024, is not eligible for a transformation bonus.
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