Citigroup Inc. (C), the third-largest U.S. bank, gave Chief Executive Officer Michael Corbat a 25 percent pay raise to about $14.4 million for 2013, his first full year running the firm.
Corbat, 53, received 78,528 shares of deferred stock, valued at $3.88 million based on the Feb. 18 closing price, according to a regulatory filing today from the New York-based bank. He also got about $5.17 million in a cash bonus, $3.88 million of performance share units, or PSUs, and a $1.5 million salary, according to Bloomberg calculations based on the firm's previously disclosed compensation plan.
Citigroup reported an 84 percent increase in profit last year to $13.9 billion as Corbat, who was named CEO in October 2012, boosted revenue and cut costs. His total 2013 compensation compares with the $23 million awarded to Goldman Sachs Group Inc.'s Lloyd C. Blankfein, the $20 million given to Jamie Dimon, JPMorgan Chase & Co.'s CEO, and the $14 million awarded to Bank of America Corp.'s Brian T. Moynihan.
Corbat, formerly head of the bank's European operations, collected $11.5 million in total compensation in 2012 when the firm's stock price rose 50 percent. Because of his split duties that year, his pay for 2013 may not be directly comparable to the earlier figures.
Citigroup's shares rose 32 percent last year, trailing the 35 percent advance of the 24-company KBW Bank Index. (BKX) Goldman Sachs climbed 39 percent, Bank of America gained 34 percent and JPMorgan rallied 33 percent.
Citigroup's compensation committee adopted a new pay plan last year after shareholders rejected the firm's 2011 arrangement amid criticism that it allowed former CEO Vikram Pandit, 57, to collect millions of dollars too easily. The committee is led by Chairman Michael O'Neill.
Under the plan outlined last year, 70 percent of the incentive award was based on agreed-upon financial metrics, with the remaining 30 percent based on strategic goals, a Feb. 19, 2013 filing showed.
Citigroup's PSUs will be paid after three years once the bank meets certain performance goals, according to last year's filing. Executives will collect all of the PSUs if Citigroup achieves return on assets of 0.85 percent and produces a total shareholder return equal to or greater than the 50th percentile for eight firms including JPMorgan, Bank of America, Goldman Sachs and Deutsche Bank AG, the filing showed.
The deferred stock awards vest over four years and can be canceled in the event of company losses, according to the filing.