Citigroup CEO Corbat earns 10% less

New York: Citigroup Inc cut its chief executive Michael Corbat's annual compensation by 10.3 percent in 2014, citing high legal expenses and the company's failure to win regulatory approval for its capital plan last year.

Corbat's earned a total of $13 million for 2014, down from $14.5 million a year earlier, according to the compensation approved by Citi's board.

His pay package includes deferred stock of about $3.5 million under Citi's compensation plan, which was overhauled two years ago amid shareholder pressure.

Corbat was paid $14.5 million in 2014, down from $17.6 million the year before, under a format prescribed by the U.S. Securities and Exchange Commission.

The CEO has been trying increase profitability at the bank by scaling back its sprawling operations, built through a series of acquisitions since the 1980s.

Citi, like other big banks, has turned to cost cuts to boost profit, as low interest rates and new regulations have crimped revenue growth. But these efforts have been overshadowed by multibillion-dollar fines and higher costs for technology and compliance.

The bank raised its quarterly dividend and announced plans to buy back $7.8 billion of stock over five quarters after it cleared the Federal Reserve's annual stress test last week.

Citi failed the stress tests in 2012 and 2014.

Chief Financial Officer John Gerspach's total compensation for 2014 was unchanged at $7.5 million, according to the filing. Manuel Medina-Mora, who heads Citi's global consumer banking arm but will retire in June, received $9.5 million for 2014.

Bank of America Corp cut Chairman and Chief Executive Brian Moynihan's pay by 7 percent in 2014, a source familiar with the matter told Reuters last month.

In contrast to Corbat and Moynihan, JPMorgan & Co Chief Executive Jamie Dimon earned $20 million in 2014, unchanged from a year earlier. Dimon's pay package included a first cash bonus in three years.

 Citigroup Inc is committed to meeting its 2015 performance targets for return on assets and efficiency, Chief Executive Officer Mike Corbat said on Wednesday.

Corbat said in an annual letter to shareholders that the goals are "within reach if market conditions remain stable."

Corbat announced the two goals for this year in March 2013. Last year he postponed a third goal, for return on equity, after the Federal Reserve rejected his request to buy back more stock. The Fed faulted the bank's risk and capital management for its businesses around the world.

Citigroup executives met repeatedly with Federal Reserve officials after the defeat and won approval last week for a new buyback request.

Regulators at the Federal Reserve who judge the company's capital plans had "made clear" that the bank will be held to "the highest standard" because of its global franchise, Corbat said. - Reuetrs