Citigroup Inc. withheld some compensation it planned to award to Paco Ybarra, who leads the sprawling institutional clients group, after the bank was forced to pay $200 million in penalties over employees’ use of unauthorized messaging channels like WhatsApp last year.
Citigroup made a “downward adjustment” to Ybarra’s pay, citing cultural issues that arose in his division that require remediation, according to a regulatory filing. The pay cut stems from the messaging issue, said a person with knowledge of the matter who asked not to be identified discussing confidential information.