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Citigroup (C) CEO Corbat's Compensation Hiked by 48% in 2017
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Citigroup’s (C - Free Report) chief executive officer (CEO) - Michael Corbat - received about 48% pay hike in his total compensation package. His annual salary has been increased to $23 million in 2017 from $15.5 million in 2016, according to a Securities and Exchange Commission (SEC) filing last week.
The CEO’s pay package includes a base salary of $1.5 million, cash bonus of $6.5 million and $15 million deferred incentives for 2017. Though the CEO failed to meet the financial targets of achieving tangible return on common equity, or ROTCE — a key profitability ratio — to 10% within two years, Corbat’s extraordinary leadership quality and Citigroup’s strong operating performance in the year led to the hike.
The company’s net income climbed 6% to $15.8 billion in 2017, excluding impact of the tax reform. However, including the impact of the tax reform, the company reported a net loss of $6.2 billion. Moreover, the company reported revenues of $71.4 billion, up 2% year over year.
Notably, in the stress test results for 2017, Citigroup emerged triumphant. The company not only managed to clear the test but outperformed other major banks as well. In its 2017 capital plan, Citigroup received approval for $15.6 billion worth of share repurchases for the four quarters beginning third-quarter 2017 and 100% dividend hike.
All positive factors have caused investors to become optimistic about Citigroup's long-term prospects. Notably, the company's share price appreciated roughly 25.2% in 2017, outperforming 18.8% growth registered by the industry, following a 15.9% rise in 2016.
Among other banking giants, Bank of America Corp.’s (BAC - Free Report) chairman as well as CEO — Brian Moynihan — is expected to receive $23 million as total compensation for 2017, which reflects a rise of 15% year over year. Among others, JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) also increased their CEOs’ compensation.
The bank said in the filing, “In addition to Citi’s positive operating results, the [remuneration] committee considered market levels of pay for the CEO role at peer institutions and Citi’s significantly improved total shareholder returns.”
Notably, Citigroup has improved on capital return to shareholders since the financial crisis, investment in core businesses and passed regulatory tests. Corbat has also been adept in strategically evaluating the various facets of the bank’s major businesses. Besides announcing numerous cost-cutting initiatives and divestment of non-core units, the CEO has handled several legal settlements.
We believe Corbat’s pay hike will prove to be a major morale booster. Citigroup’s fundamentals remain highly promising with a diverse business model and a strong balance sheet.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
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Citigroup (C) CEO Corbat's Compensation Hiked by 48% in 2017
Citigroup’s (C - Free Report) chief executive officer (CEO) - Michael Corbat - received about 48% pay hike in his total compensation package. His annual salary has been increased to $23 million in 2017 from $15.5 million in 2016, according to a Securities and Exchange Commission (SEC) filing last week.
The CEO’s pay package includes a base salary of $1.5 million, cash bonus of $6.5 million and $15 million deferred incentives for 2017. Though the CEO failed to meet the financial targets of achieving tangible return on common equity, or ROTCE — a key profitability ratio — to 10% within two years, Corbat’s extraordinary leadership quality and Citigroup’s strong operating performance in the year led to the hike.
The company’s net income climbed 6% to $15.8 billion in 2017, excluding impact of the tax reform. However, including the impact of the tax reform, the company reported a net loss of $6.2 billion. Moreover, the company reported revenues of $71.4 billion, up 2% year over year.
Notably, in the stress test results for 2017, Citigroup emerged triumphant. The company not only managed to clear the test but outperformed other major banks as well. In its 2017 capital plan, Citigroup received approval for $15.6 billion worth of share repurchases for the four quarters beginning third-quarter 2017 and 100% dividend hike.
All positive factors have caused investors to become optimistic about Citigroup's long-term prospects. Notably, the company's share price appreciated roughly 25.2% in 2017, outperforming 18.8% growth registered by the industry, following a 15.9% rise in 2016.
Among other banking giants, Bank of America Corp.’s (BAC - Free Report) chairman as well as CEO — Brian Moynihan — is expected to receive $23 million as total compensation for 2017, which reflects a rise of 15% year over year. Among others, JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) also increased their CEOs’ compensation.
The bank said in the filing, “In addition to Citi’s positive operating results, the [remuneration] committee considered market levels of pay for the CEO role at peer institutions and Citi’s significantly improved total shareholder returns.”
Notably, Citigroup has improved on capital return to shareholders since the financial crisis, investment in core businesses and passed regulatory tests. Corbat has also been adept in strategically evaluating the various facets of the bank’s major businesses. Besides announcing numerous cost-cutting initiatives and divestment of non-core units, the CEO has handled several legal settlements.
We believe Corbat’s pay hike will prove to be a major morale booster. Citigroup’s fundamentals remain highly promising with a diverse business model and a strong balance sheet.
Citigroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>