Citigroup reduces executive's pay, cites issues at Mexico unit

March 12 Wed Mar 12, 2014 6:20pm EDT

March 12 (Reuters) - Citigroup Inc has reduced the annual compensation high-ranking executive Manuel Medina-Mora following problems with controls at the Mexico subsidiary he oversees.

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, that 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 this month.

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 Feb. 28.

Medina-Mora declined to comment through a Citigroup spokesman.

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