Citigroup executives stand to collect $579m under profit-sharing plans that include the one shareholders voted against last year.
Competitors of the New York-based bank said they didn’t make similar awards, which are on top of annual salaries and bonuses.
Citigroup’s executive pay has been under fire since April, when shareholders rejected 2011 compensation packages for senior managers - including profit sharing - in a non-binding ballot. Chairman Michael O’Neill, 66, also a member of the board’s compensation committee, said last month that future payouts will be more in line with performance.
'It’s not a particularly well-designed incentive plan and it’s probably a good thing that it’s being phased out', said Paul Hodgson, an independent compensation analyst based in Maine. 'They’re a bit of a blunt instrument'.
The Key Employee Profit Sharing Plans, or KEPSPs, cover Citigroup’s performance from 2010 to 2012. The bank will pay two-thirds of the awards by March 15 while executives must wait until 2014 for the rest, according to filings.
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