A group of former Citigroup (C, Financials) executives are pushing the company's board to cancel bonuses given to hundreds of managers, reduce the employment of consultants, and step up its transformation efforts, Bloomberg said Thursday, citing a letter the group handed to the board this month.
Collectively owing $12.7 million in deferred stock-based pay, the former executives are asking the board of Citi to stop and revoke performance-related incentives given to managers engaged in business line overhauls and restructuring. According to people familiar with the situation, they suggested a meeting with Citi's board explaining their worries in a letter sent earlier this month.
These requests align with CEO Jane Fraser's strategy plan, unveiled last year, which calls for a reorganizing of the bank's business divisions and a cut of 20,000 employment. In response to regulatory demands, the strategy also emphasizes strengthening risk management and compliance systems.
Responding to the letter, Citigroup pointed out that it has several factual mistakes and distortions. The business said, however, that tough choices are being taken to reach this goal as stakeholders want to see advancement on its transition.
