Citi Cuts Bonuses, Severance for Top Execs

But the Treasury Department was forced in late November to take an additional $20 billion stake after Citi's stock fell to record lows amid investors' concerns about the company's viability.

Other top banks that have received government investments, including Goldman Sachs and Morgan Stanley (MS Quote), also have cut bonuses for top executives this year.

The executive compensation news comes as Citi continues to pare down its extraneous businesses.

Separately on Wednesday, Citi said it had completed the sale of its Indian outsourcing business, Citigroup Global Services Ltd., to Tata Consultancy Services for $512 million in cash. It first agreed to sell the unit in October.

In addition to the sale, Citi has agreed to have Tata process outsourcing services to the bank and its affiliates over a period of 9.5 years. The agreement builds upon an existing relationship between Citi and Tata, it said.

Citi announced in November that it planned to cut an additional 53,000 jobs from its bloated global workforce as the bank struggles with massive writedowns and credit issues from its businesses.

Citi said the sale of the outsourcing business will reduce its global headcount by more than 12,000 employees, all of whom are located in India.