8-KLeadership ChangesOther Events

CITIGROUP INC 8-K Report, Executive Changes (Feb 15, 2019)

Filed February 15, 2019For Securities:CC-PNC-PR

Summary

This Form 8-K filing by Citigroup Inc. (Citi) on February 15, 2019, primarily announces a significant change in its Chief Financial Officer role and provides details on executive compensation for 2018. Mark A.L. Mason has been appointed as the new CFO, effective February 23, 2019, succeeding John C. Gerspach who is retiring. Mason, with a strong background in Citi's Institutional Clients Group and prior leadership roles, will receive a base salary of $500,000 annually, aligning with other senior executives. The filing also details the 2018 incentive compensation awarded to CEO Michael L. Corbat and other senior executives. The Compensation Committee recognized "solid operating performance" in 2018, characterized by an $18.0 billion net income and $72.9 billion in revenues, a substantial improvement from the $6.8 billion net loss in 2017, largely influenced by tax reforms. The Compensation Committee's decision on executive pay considered earnings per share growth, revenue performance (excluding certain gains on sale), expense management, positive operating leverage, capital plan approval, and significant capital returns to shareholders.

Key Highlights

  • 1Mark A.L. Mason appointed as Chief Financial Officer, effective February 23, 2019.
  • 2Current CFO John C. Gerspach to retire on February 22, 2019, with full retirement from the company on March 1, 2019.
  • 3Mark A.L. Mason's starting base salary set at $500,000 per year.
  • 42018 net income reported at $18.0 billion on revenues of $72.9 billion, a significant recovery from a $6.8 billion net loss in 2017.
  • 5CEO Michael L. Corbat's 2018 total compensation set at $24 million, a 4% increase from 2017.
  • 6Incentive compensation for 2018 reflects strong performance metrics including earnings per share growth, expense discipline, and capital returns.
  • 7Citi returned $18.4 billion to common shareholders in 2018 via share repurchases and dividends.

Frequently Asked Questions

Mark A.L. Mason has been appointed as the new Chief Financial Officer (CFO) of Citigroup, effective February 23, 2019.

In 2018, Citigroup reported a net income of $18.0 billion on revenues of $72.9 billion, a significant improvement from a net loss of $6.8 billion on revenues of $72.4 billion in 2017. Excluding the impact of the Tax Cuts and Jobs Act, net income increased by 14% year-over-year.

CEO Michael L. Corbat's total compensation for 2018 was $24 million, consisting of a $1.5 million base salary and a $22.5 million incentive award, representing a 4% increase from his 2017 compensation.

Citigroup returned a substantial $18.4 billion of capital to common shareholders in 2018 through a combination of share repurchases and dividends, which also resulted in an 8% reduction in outstanding common shares.