Citigroup (C)

Objectives of Citigroup’s executive compensation programs

Citigroup pays its senior executives according to its longstanding philosophy of compensating senior executives for objectively demonstrable performance. Senior management compensation programs at Citigroup are intended to align the interests of management with those of stockholders in the creation of long-term stockholder value by providing pay for performance. The programs are designed to attract and retain the best talent, and to motivate executives to perform by linking incentive compensation to demonstrable performance-based criteria.

Citigroup seeks to attract and retain a highly qualified global workforce to deliver superior short-term and long-term performance to stockholders. Compensation for management is based on pay for performance, so that individual compensation awards reflect the performance of Citigroup overall, the particular business unit and individual performance. Performance goals for management are designed to balance short-term and long-term financial and strategic objectives that build stockholder value. Compensation levels are competitive with the marketplace in order to attract and retain high-performing executives.

Citigroup compensates its executives based not only on how well its businesses perform from a financial standpoint, but on how Citigroup does business. Superior performance encompasses achievement of financial goals as well as objective excellence in other key areas, such as exemplifying Citigroup’s Shared Responsibilities, including the maintenance of sound regulatory relationships around the world.

When an executive achieves superior results, the executive is rewarded. Conversely, inferior performance by an executive leads to a reduction in, or elimination of, incentive compensation for the subject period. Inferior performance is also evaluated to determine the underlying causes and the executive, as well as his or her staff, will be incentivized to address the issues and will be