America's pay czar slashed the compensation paid to Citigroup's vice chairman and trading head by as much as 63 per cent, according to a regulatory filing.

Citigroup said that vice chairman Stephen Volk would be paid a maximum of $5.9 million this year, down from $10.5 million last year, in what was a rare glimpse of the cuts Kenneth Feinberg, the Special Master for Tarp Executive Compensation, has made from individual bankers' pay.

Mr Volk, whose cash pay will be unchanged at $500,000, will receive $3.4 million in Citigroup stock, plus another $2 million in restricted stock if he hits his bonus targets.

James Forese, Citigroup's co-head of global markets, will have his pay capped at $8.6 million, down from $12.9 million.

Mr Forese will, however, see his cash salary more than double to $475,000.

He will receive $5.4 million worth of shares plus a possible $2.9 million in restricted stock.

Cash pay for John Gerspach, Citigroup's chief financial officer, will increase by $100,000 to $500,000, plus $2.9 million in stock and a possible $1.7 million in restricted stock.

The bank did not ask for Mr Feinberg to approve changes to the $1-per-year compensation package previously awarded to Vikram Pandit, the chief executive, sources said.

The Pay Czar announced last month that he had cut pay for the 25 most expensive employees at seven companies by on average 50 per cent. The companies affected still owe the Government billions of dollars in bailout loans.

Mr Feinberg said at the time that 90 per cent of the workers hit by his cuts would not be paid more than $500,000 in cash per year.

Under Mr Feinberg's rules, the restricted stock cannot be sold under the companies have repaid their bailouts which in Citigroup's case is $45 billion.

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