Michael Corbat earned $14.1m in 2013, up from $11.5m in 2012. What was so puzzling was that it seemed that he'd done so little to deserve it.
CNN / Fortune magazine reports that it's hard to make waves anymore in the lavish realm of executive compensation, where shock value evaporated long ago. But Citigroup did just that on Thursday when it increased the compensation of CEO Michael Corbat by an estimated 23%.
It wasn't the dollar amount that was so surprising. Corbat earned $14.1m in 2013, up from $11.5m in 2012. What was so puzzling was that it seemed that he'd done so little to deserve it.
The regulatory filing that revealed Corbat's compensation came about a month after Citigroup's reported fourth-quarter earnings in which profit jumped 21% but still missed analyst's estimates. Its earnings of $2.6bn, or 82 cents a share, came up short of Wall Street's expectations, which had expected earnings of 95 cents a share. Revenue at the bank slipped 1%, to $17.8bn.
The latest earnings report closed out Corbat's first full year at the helm of the bank. When he took the reins from Vikram Pandit in October 2012, Corbat promised to increase profitability and efficiency at the firm, which had become deeply entrenched in the morass of the Great Recession. If the fourth-quarter earnings are any indication, though, Corbat has yet to make good on those promises.
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