Citigroup's top three executives have passed up bonuses, as the banking giant works to return to profitability after five straight quarters of losses.
Chief Executive Vikram Pandit, Chairman Win Bischoff and Chief Financial Officer Gary Crittenden have declined incentive and retention awards that were offered to members of the bank's executive committee, Citigroup said in a filing Wednesday with the Securities and Exchange Commission.
Other executives received stock awards that vest if Citigroup's shares meet specific price targets during the next four years, according to the filing. Half of each individual's award has a price target of $17.85 and half has a price target of $10.61. The members of the executive committee also received premium priced stock options, which have a 10-year term and exercise prices of $17.85 and $10.61.
The awards, made on Jan. 14 and 20, come as Citigroup's shares hover at lows not seen in more than 15 years. The stock has lost a staggering 58 percent in the first three weeks of this year, and dropped 20 percent to $2.80 on Tuesday as investors fear recent moves by the government to prop up banks might not be enough. Other financial stocks also hit multiyear lows on Tuesday. Bank of America Corp. dropped 29 percent.
Citigroup received $25 billion under the government's capital purchase program that pumped $250 billion directly into banks through preferred stock purchases. But the government was forced to step in once again in November with another $20 billion loan.
Citigroup is not alone in requiring more government funding than originally planned last fall. Last week, the Bush administration agreed to give Bank of America an additional $20 billion worth of fresh capital to help it sustain losses at the recently-acquired Merrill Lynch, in addition to $25 billion in rescue funds it previously received.
On Tuesday, Citigroup declared a quarterly dividend of 1 cent per share — all that is allowed under its agreement with the federal government. The bank's last dividend payment in November was 16 cents per share, which was half of its 32-cent payout in the previous quarter.
While Citigroup's problems persist, it has begun taking big steps to return to profitability.
Upon reporting a loss of $8.29 billion for the fourth quarter, Citigroup said Friday it is reorganizing into two units: Citicorp and Citi Holdings. The first will focus on traditional banking around the world, while the second will oversee the company's riskier assets and tougher-to-manage ventures.