Citigroup changes pay calculations after receiving complaints

Citi Building Sign

Citigroup’s board changed the way the bank calculates performance pay for executives after receiving some complaints. The largest proxy advisers weren’t swayed.

Bloomberg News reports that executives can now earn more than 100% of their annual performance-based compensation only if shareholder returns are positive, the New York-based bank said Wednesday in a regulatory filing.

The plan is designed to ensure executives don’t get bonuses that are bigger than those initially awarded if total shareholder returns fall over a three-year period. The changes are reflected in performance share units granted in February.

Citigroup “heard some concerns from other stakeholders regarding Citi’s new performance share unit” program after submitting its proxy last month, according to the filing. The board’s compensation committee “remains fully committed to a robust pay-for-performance executive-compensation program.”

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