Citigroup cut the pay of its Mexico chairman, Manuel Medina-Mora, by about $1.1 million last year from 2012, citing “control issues†at its Banamex USA unit.
Mr. Medina-Mora, 62, was paid a total of about $14 million in 2013, down from $15.1 million the previous year, the bank disclosed in a public filing late Wednesday. Banamex’s operations ultimately falls under Mr. Medina-Mora’s oversight. He also serves as a Citigroup co-president, overseeing global consumer banking.
His reported total compensation included stock grants made in 2013 for performance in 2012, as well as some deferred cash awards.
Banamex USA, which is the American arm of the bank’s sprawling Mexican operations, has received subpoenas from federal prosecutors as part of a criminal investigation related to compliance issues governing anti-money laundering.
In deciding Mr. Medina-Mora’s compensation, the bank said “the incentive award reflects consideration of leadership accountability for disclosed control issues that were identified in 2013, including in Banamex USA.â€
Mr. Medina-Mora has been a star at Citi, who has risen through the ranks since the bank bought Banamex in 2001.
Banamex is also at the center of multiple government inquiries and an internal investigation at Citi related to a $400 million fraud involving an oil services company.
Citi said in its proxy statement that that officials had determined executive compensation before the fraud was discovered at Banamex last month and the fraud had no impact on how the bank’s top executives were paid last year.
But the bank added that it “will evaluate whether the events that led to the adjustment should result in reductions in compensation for 2014 and/or clawbacks of compensation previously awarded to any affected employee throughout the company.â€
