Will Citigroup Inc. (C) Return to Its Former Glory?

Page 1 of 2

Citigroup Inc. (NYSE:C) is a company which provides a large gamut of financial services that includes retail banking, investment banking, asset management, and corporate banking to consumers, corporations, governments, and institutions worldwide. The departure of Vikram Pandit as CEO of Citigroup has become a positive catalyst for the company. It seems that the former manager was not so efficient. Hence, the company was quite unstable with no growth in shareholders’ value. Former Citigroup Inc. (NYSE:C) director and current chairman Michael E. O’Neill has reshaped the New York Company, by focusing on cost cutting.

Citigroup Inc (NYSE:C)Executive pay plan

Citigroup has now introduced a compensation structure that aligns with performance and is more competitive. In 2012, Citigroup Inc. (NYSE:C) earned a profit of $7.54 billion. If the annual net income divided by total assets (i.e. return on assets) falls below 0.6%, executives won’t be eligible for any kind of stock units. The executives are only capable of having 150% of its allocation, if the returns of the company are higher. For 2012, there was no cash bonus offered to JPMorgan Chase & Co. (JPM)’s Jamie Dimon, as well as to Bank of America Corp (NYSE:BAC)’s Brian T. Moynihan. While, Lloyd C. Blankfein of was awarded with $5.7 million cash bonus. In 2011, Vikram Pandit was paid $15 million.

Stock performance

The CEO has planned to fire 11,000 workers to help increase the return for shareholders and to cut costs. In 2012, Citigroup shares returned 50% compared to JPMorgan Chase & Co. (NYSE:JPM)’s i.e. 32%.

Blankfein at Goldman Sachs was awarded with $21 million package, while Charlotte based Bank of America awarded Moynihan $12 million.

Citigroup Inc. (NYSE:C) has been working on soured loans, whittling costs, and unwinding unprofitable business lines which are key prospects for the revenue increase in future. I am highly bullish in this particular stock in long –term which is truly valuable.

Competitor analysis

JPMorgan Chase, Bank of America, HSBC Holdings plc (ADR) (NYSE: HBC) are Citi’s main competitors. Bank of America reported a 77% drop in fourth-quarter earnings as it was clearing old problems from its mortgage unit. Bank of America has been reporting quarterly losses that are linked to acquisitions. Citigroup Inc. (NYSE:C) reported earnings of $1.2 billion in the final few months of the year.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!