Citigroup overhauls executive pay plan after shareholder vote

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February 22, 2013 9:14 AM EST

Citigroup Inc said it has overhauled the executive pay plan that shareholders rejected last year to better tie bonus payments to stock performance and profitability.

The company, in a filing Thursday afternoon, also said the company is paying new Chief Executive Mike Corbat $11.5 million (7.5 million pounds) for his work in 2012.

The plan was crafted after board Chairman Michael O'Neill and other directors met with "nearly 20" shareholders representing more than 30 percent of Citigroup stock, according to the filing.

The new plan provides that 30 percent of the bonus for top executives will be paid in cash, depending on how much the company earns on assets and on total shareholder return compared with peers over three years through 2015.

Citigroup's previous pay plan failed to win endorsement of shareholders in a vote at the company's annual meeting in April.

"When our shareholders spoke last year about Citi's compensation structure, we listened," O'Neill said in the filing.

The 2012 pay for Corbat, who was named CEO in October, was based partly on the new pay plan which was being developed last year. The company has not yet disclosed pay for other top executives.

(Reporting by David Henry in New York; Editing by Gary Hill and Richard Chang)

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