Citigroup Pays CEO Prince $26 Million for 2006
Citigroup awarded Chairman and Chief Executive Charles Prince $25.98 million in compensation for 2006, about 13% more than a year earlier, though costs grew twice as fast as revenue.
Prince was given a $1 million salary, a $13.2 million bonus, $10,633,333 in stock awards, $746,607 in option awards and $395,779 in other compensation, according to the bank's proxy filing with the U.S. Securities and Exchange Commission.
Compensation includes amounts awarded as accounted for by Citigroup , not cash or stock that Prince received. Year-earlier results are not precisely comparable because Citigroup, like many companies, changed how it discloses compensation.
New York-based Citigroup last year increased operating profit 7% to $21.25 billion. Revenue rose 7%, while operating expenses rose 15%. Prince is under pressure from many investors and analysts to curb spending and generate faster revenue growth.
The company's shares rose 15% last year, topping the 13% gain in the 24-member Philadelphia KBW Bank Index. Most of Citigroup's rise was in December, when Prince installed Robert Druskin as chief operating officer and put him in charge of a comprehensive cost-cutting plan.
Among other Citigroup executives, Executive Committee Chairman Robert Rubin was awarded $17.34 million, Druskin $15.71 million, and Vice Chairman Stephen Volk $9.83 million. Sallie Krawcheck, the chief financial officer before becoming wealth management chief on Monday, was awarded $9.92 million.
Citigroup said an independent compensation consultant reviewed the executives' pay, and found it "reasonable."
Ken Thompson, who runs No. 4 bank Wachovia , was awarded $23.85 million for 2006. No. 2 Bank of America and No. 3 JPMorgan Chase & Co. have yet to disclose compensation for their top executives.
Many Wall Street banking executives received more compensation, led by Goldman Sachs Group Chief Executive Lloyd Blankfein, who was awarded $54.3 million.