Citigroup has cut bonuses for 250 top employees under a programme that tied their pay to a turnaround effort aimed at boosting shareholder returns and fixing compliance shortcomings at the US bank.

Citi’s so-called transformation bonus programme was put in place three years ago to incentivise senior staff to boost the group’s financial performance and improve its risk and control systems following an order by regulators to take action after a high-profile blunder in which it accidentally wired $900mn to a group of hedge funds.

Citi paid out 53 per cent of the target amount to employees eligible for the programme in 2024, its third and final year, according to bank’s filings on Tuesday. This was down from 94 per cent in 2022 and 80 per cent in 2023.