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Citigroup cut CEO Corbat's pay by 7 pct to $13.1 mln in 2014

Citigroup cut Chief Executive Michael Corbat's pay by about 7 percent in 2014, a year in which the bank's profit nearly halved due to higher legal costs and a slump in bond trading.

Corbat earned an estimated $13.1 million for the year, including deferred shares worth about $3.49 million based on the stock's Thursday close. He earned an estimated $14.1 million in 2013.

Deferred stock makes up 30 percent of Corbat's bonus pay under Citi's compensation plan, which was overhauled two years ago amid shareholder pressure.

Corbat has been trying to make the bank as profitable as its rivals by scaling down 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.

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

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

Citi consumer banking chief to retire

Separately, Manuel Medina-Mora, the head of Citigroup's consumer banking business, will retire on June 1, Chief Executive Mike Corbat said in a memo to employees.

Medina-Mora will be non-executive chairman of Banco Nacional de Mexico (Banamex) after his retirement.

The former Banamex CEO had joined the Wall Street bank in 2001, when Citigroup bought the Mexican bank.