Citibank 2015 Annual Report Download - page 176

158
Incentive Compensation Cost
The following table shows components of compensation expense, relating
to certain of the above incentive compensation programs, recorded during
2015, 2014 and 2013:
In millions of dollars 2015 2014 2013
Charges for estimated awards
to retirement-eligible employees $ 541 $ 525 $ 468
Amortization of deferred cash awards,
deferred cash stock units and performance
stock units 325 311 323
Immediately vested stock award expense (1) 61 51 54
Amortization of restricted and deferred
stock awards (2) 461 668 862
Option expense —1 10
Other variable incentive compensation 773 803 1,076
Profit sharing plan —1 78
Total $2,161 $ 2,360 $ 2,871
(1) Represents expense for immediately vested stock awards that generally were stock payments in lieu
of cash compensation. The expense is generally accrued as cash incentive compensation in the year
prior to grant.
(2) All periods include amortization expense for all unvested awards to non-retirement-eligible employees.
Amortization is recognized net of estimated forfeitures of awards.
Future Expenses Associated with Outstanding (Unvested) Awards
Citi expects to record compensation expense in future periods as a result of
awards granted for performance in 2015 and prior years. Because the awards
contain service or other conditions that will be satisfied in the future, the
expense of these already-granted awards is recognized over those future
period(s). Citi’s expected future expenses, excluding the impact of forfeitures,
cancellations, clawbacks and repositioning-related accelerations that have
not yet occurred, are summarized in the table below. The portion of these
awards that is subject to variable accounting will cause the expense amount
to fluctuate with changes in Citigroup’s common stock price.
In millions of dollars 2016 2017 2018
2019 and
beyond (1) Total (2)
Awards granted in 2015 and prior:
Deferred stock awards $339 $201 $ 88 $ 12 $ 640
Deferred cash awards 215 121 45 4 385
Future expense related to awards
already granted $554 $322 $133 $ 16 $ 1,025
Future expense related to awards
granted in 2016 (3) 297 211 166 113 787
Total $851 $533 $299 $129 $1,812
(1) Principally 2019.
(2) $1.6 billion of which is attributable to ICG.
(3) Refers to awards granted on or about February 16, 2016, as part of Citi’s discretionary annual
incentive awards for services performed in 2015.