Daily Lessons from Life 16 February 2018 - Good to be a bank CEO!!
"Citigroup raises CEO Corbat's pay 48 percent to US$23 million
NEW YORK: Citigroup Inc raised Chief Executive Officer Michael Corbat's annual compensation by 48 percent to US$23 million for 2017, a year in which the bank made more money from operations but still fell short of earlier targets.
Directors considered recent progress toward new targets when setting Corbat's pay, according to a public filing on Friday.
A year earlier, Corbat's annual compensation was cut 6 percent to US$15.5 million after the bank missed financial performance targets and saw one-third of its voting shareholders disapprove of his prior pay.
After that vote, the company made changes to its pay plan, which was then endorsed by 97 percent of voting shareholders at its annual meeting in April.
In July, Citigroup recast targets set in 2013 as new goals for 2020.
In 2017, Citigroup stock jumped 25 percent and its profit rose 4 percent, excluding a charge for the impact of the U.S. tax law change on the value of its deferred tax assets.
Corbat, 57, has been CEO since 2012. Citigroup is the fourth biggest U.S. bank by assets.
The change in Corbat's pay compares with annual raises of 5 to 20 percent for some other Wall Street executives. Jamie Dimon, CEO of JPMorgan Chase & Co, the biggest U.S. bank, was paid US$29.5 million, a 5.4 percent increase. Morgan Stanley CEO James Gorman's compensation was raised 20 percent to US$27 million.
Lloyd Blankfein, chief executive of Goldman Sachs Group Inc received a 9 percent raise to US$22 million, the company said on Friday. Bank of America Corp CEO Brian Moynihan was paid US$23 million, up 15 percent."
For the life of me, I will never be able to comprehend these more than 5m pay since I hv revered earned more than 1m in pay let allow 20+m that these folks r getting regularly!
Maybe their banks make 1B or more than 100m net profit. So, as a % of that, the pay of 20+m is not significant! Yes? 10m of 1B is 1% though 10m of 100m is 10% n not significant for sure.
The question then is: how much of total pay of ALL OTHER employees as % to the net profit made? If it is 30%, not so bad. If less than that, why should 1 person get 10% n the rest of thousands split the less than 30%??