Medina-Mora, 63 and co-president of Citigroup, was paid $9.5 million
in total compensation for 2013, according to a proxy statement filed
by the company on Wednesday. That was down from the $11 million he
received for 2012, which was reported in last year's filing.
The latest filing said that a factor in Medina-Mora's pay was
control issues at Banamex USA. Last year, regulators sanctioned that
unit of Citigroup's Mexican bank for lax controls against money
laundering. The same unit is the subject of a federal criminal
investigation over money laundering, Citigroup disclosed earlier
Citigroup's board of directors, which issued the filing ahead of it
the company's annual meeting April 22, also said it may cut 2014 pay
and claw back some prior compensation because of a $400 million loan
fraud at Banamex in Mexico that was disclosed February 28.
Citigroup said it discovered the fraud in loans to Oceanografia, a
supplier to Pemex, the state-owned oil company of Mexico. The loans
were based on invoices Oceanografia said it was owed by Pemex, but
Citigroup found that the invoices were not valid.
Citigroup has said it is continuing to investigate how the fraud
happened and that it has gone to law enforcement authorities with
information in hope that a criminal action against the perpetrators
will increase its chances of recovering some of its losses.
Future paycuts and clawbacks for the loss in Mexico will be
considered as the company carries on its review of the fraud, the
filing said. The company has already reduced variable compensation
for Banamex employees by $40 million as a direct result of the loss,
the filing noted.
The company has been reviewing other loans to suppliers, which total
$14 billion worldwide, and believes the losses on the Oceanografia
loans are an "isolated" event.
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Medina-Mora came to Citigroup through its purchase of Banamex in
2001. While continuing to oversee the Mexican operations, he has
risen to also become the CEO of Citigroup's Global Consumer Banking
unit, which is essentially half of the company.
Medina-Mora is known to many in the bank as "Mr. Mexico" because of
his history with the franchise and his standing in his home country
as chairman of the Mexico's second-biggest bank.
Medina-Mora declined to comment through a Citigroup spokesman.
James Forese, who is Citigroup's other co-president, was paid $14
million for 2013, his first year with the title and with
responsibility for all of Citigroup's corporate, capital markets and
investment banking businesses, according to the new filing.
CEO Michael Corbat was paid $14.5 million, up from $11.5 million,
according to the new and previous year's filings. Corbat became CEO
in October 2012 when directors ousted Vikram Pandit from the post.
Chief Financial Officer John Gerspach's compensation rose to $7.5
million from $7 million, according to the filings.
(Reporting by David Henry in New York;
editing by Cynthia Osterman)
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