INCENTIVE PLANS (Tables)

A summary of the status of other unvested stock awards granted as discretionary annual incentive or sign-on and replacement stock awards is presented below:


Unvested stock awards	Shares	Weighted- average grant date fair value per share
Unvested at December 31, 2024	67,686,535	$	53.87
Granted(1)	22,582,206	80.84
Canceled	(2,944,542)	60.79
Vested(2)	(24,092,057)	57.50
Unvested at December 31, 2025	63,232,142	$	61.79

(1)The weighted-average fair value of the shares granted during 2025, 2024 and 2023 was $80.84, $53.00 and $49.36, respectively.

(2)The total fair value of stock awards that vested during the years ending 2025, 2024 and 2023 was $1.9 billion, $1.1 billion and $835 million, respectively.

A summary of the performance share unit activity for 2025 is presented below:


Performance share units			Units
Outstanding, beginning of year			2,859,893
Granted			963,390
Canceled			(178,693)
Payments(1)			(353,131)
Outstanding, end of year			3,291,459

(1) $27.9 million in payments were processed for this program in 2025.


Stock options	Options	Weighted- average exercise price		Weighted- average remaining contractual life (in years)	Aggregate intrinsic value
Outstanding at December 31, 2024	—	$	—
Granted(1)	1,000,000	96.30
Exercised	—	—
Canceled	—	—
Outstanding at December 31, 2025	1,000,000	$	96.30	9.8	$	20,390,000
Exercisable at December 31, 2025	—	$	—	—	$	—

(1)The weighted-average fair value of options granted during 2025 was $28.6 million.


	2025
Dividend yield	2.57	%
Expected volatility	31.94
Risk-free interest rate	3.74
Expected life of stock option (in years)	7


Valuation assumptions—weighted average	2025		2024		2023
Expected volatility	26.58	%	26.82	%	35.97	%
Expected dividend yield	2.73		3.84		4.13

Certain assumptions used in determining pension and postretirement benefit obligations and net expense (benefit) for the Company’s plans are presented in the following tables:


At year end	2025	2024
Discount rate
U.S. plans
Qualified pension	5.26%	5.55%
Nonqualified pension	5.30	5.60
Postretirement benefit plan	5.18	5.55
Non-U.S. pension plans
Range	1.15 to 12.75	0.85 to 12.50
Weighted average	7.24	7.31
Non-U.S. postretirement benefit plan
Range	4.00 to 11.00	3.25 to 12.20
Weighted average	10.37	11.21
Future compensation increase rate(1)
Non-U.S. pension plans
Range	1.50 to 12.40	1.60 to 12.40
Weighted average	3.96	3.80
Expected return on assets
U.S. plans
Qualified pension	6.00	6.00
Postretirement benefit plan(2)	6.00/3.00	6.00/3.00
Non-U.S. pension plans
Range	1.00 to 11.50	2.00 to 11.50
Weighted average	6.70	6.27
Non-U.S. postretirement benefit plan
Range	9.60 to 10.00	8.60 to 9.40
Weighted average	9.60	9.39
Interest crediting rate (weighted average)(3)
U.S. plans	4.26	4.55
Non-U.S. plans	1.80	1.77

(1) Not material for U.S. plans.

(2) For the years ended 2025 and 2024, the expected return on assets for the Voluntary Employees Beneficiary Association (VEBA) Trust was 3.00%.

(3) The Company has cash balance plans and other plans with promised interest crediting rates. For these plans, the interest crediting rates are set in line with plan rules or country legislation.


During the year	2025	2024	2023
Discount rate
U.S. plans(1)
Qualified pension	5.55%	5.10%/5.30%/ 5.50%/4.90%	5.50%/5.15%/ 5.40%/6.05%
Nonqualified pension	5.60	5.15/5.40/ 5.60/4.95	5.55/5.20/ 5.45/6.10
Postretirement benefit plan	5.55	5.20/5.40/ 5.60/4.90	5.60/5.25/ 5.50/6.10
Non-U.S. pension plans(2)
Range	0.85 to 12.50	1.35 to 14.55	1.75 to 25.20
Weighted average	7.31	6.91	6.66
Non-U.S. postretirement benefit plan(2)
Range	3.25 to 12.20	3.80 to 11.40	3.25 to 11.55
Weighted average	11.21	9.90	9.80
Future compensation increase rate(3)
Non-U.S. pension plans(2)
Range	1.60 to 12.40	1.30 to 12.40	1.30 to 23.11
Weighted average	3.80	3.84	3.76
Expected return on assets
U.S. plans
Qualified pension(4)	6.00	5.70	5.70
Postretirement benefit plan(4)	6.00/3.00	5.70/3.00	5.70/3.00
Non-U.S. pension plans(2)
Range	2.00 to 11.50	2.00 to 11.50	1.00 to 11.50
Weighted average	6.27	6.62	6.05
Non-U.S. postretirement benefit plan(2)
Range	8.60 to 9.40	8.60 to 9.40	8.70 to 9.10
Weighted average	9.39	9.39	8.70
Interest crediting rate (weighted average)(5)
U.S. plans(1)	4.55	4.10/4.30/ 4.50/3.90	4.50/4.15/ 4.40/5.05
Non-U.S. plans	1.77	1.78	1.73

(1) Represents rates used in annual remeasurement in 2025 and in quarterly remeasurements for 2024 and 2023.

(2) Reflects rates utilized to determine the net expense (benefit) for non-U.S. pension and postretirement benefit plans.

(3) Not material for U.S. plans.

(4) The expected return on assets for the U.S. pension and postretirement benefit plans was adjusted from 5.70% to 6.00% effective January 1, 2025 to reflect a change in asset allocation. For the years 2025, 2024 and 2023, the expected return on assets for the VEBA Trust was 3.00%.

(5) The Company has cash balance plans and other plans with promised interest crediting rates. For these plans, the interest crediting rates are set in line with plan rules or country legislation.

Citigroup’s pension and postretirement benefit plans’ asset allocations for the U.S. plans and the target allocations by asset category based on asset fair values are as follows:


	Target asset allocation	U.S. pension assets at December 31,				U.S. postretirement assets at December 31,
Asset category(1)	2026	2025		2024		2025		2024
Equity securities(2)	0–13%	7	%	7	%	7	%	7	%
Debt securities(3)	62–100	71		71		71		71
Real assets(1)	0–9	5		5		5		5
Private equity	0–7	7		7		7		7
Other investments	0–13	10		10		10		10
Total		100	%	100	%	100	%	100	%

(1)Target asset allocations are set by investment strategy, whereas pension and postretirement assets as of December 31, 2025 and 2024 are based on the underlying investment product. For example, the private equity investment strategy may include underlying investments in real assets (includes real estate, infrastructure and natural resources) within the target asset allocation; however, within pension and postretirement assets, the underlying investment in real assets is reflected in the real assets category and not private equity.

(2)Equity securities in the U.S. pension and postretirement benefit plans do not include any Citigroup common stock at the end of 2025 and 2024.

(3)The VEBA Trust for postretirement benefits is primarily invested in cash equivalents and debt securities in 2025 and 2024 and is not reflected in the table above.

Citigroup’s pension and postretirement benefit plans’ weighted-average asset allocations for the non-U.S. plans and the actual ranges, and the weighted-average target allocations by asset category based on asset fair values, are as follows:


	Non-U.S. pension plans
	Target asset allocation	Actual range at December 31,		Weighted average at December 31,
Asset category(1)	2026	2025	2024	2025		2024
Equity securities	0–46%	0–46%	0–49%	11	%	18	%
Debt securities	0–100	0–100	0–100	78		73
Real assets	0–15	0–12	0–16	1		1
Other investments	0–100	0–100	0–100	10		8
Total				100	%	100	%


	Non-U.S. postretirement benefit plans
	Target asset allocation	Actual range at December 31,		Weighted average at December 31,
Asset category(1)	2026	2025	2024	2025		2024
Equity securities	0–16%	0–12%	0–37%	12	%	36	%
Debt securities	79–100	83–100	59–100	84		60
Other investments	0–5	0–4	0–4	4		4
Total				100	%	100	%

The following table presents components of compensation expense, relating to the incentive compensation programs described above:


In millions of dollars	2025		2024		2023
Charges for estimated awards to retirement-eligible employees	$	819	$	741	$	663
Amortization of deferred cash awards, deferred cash stock units and performance stock units	254		186		340
Immediately vested stock award expense(1)	29		130		127
Amortization of restricted and deferred stock awards(2)	758		718		689
Option expense	1		—		—
Other variable incentive compensation	398		355		286
Total	$	2,259	$	2,130	$	2,091

(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.