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Citizens Financial<\/a> Group just slapped a pair of \u201cgolden handcuffs\u201d on two executives<\/a> who might someday lead the bank.<\/p>\n The 14th-largest bank with $222 billion in total assets offered up extra retention bonuses<\/a> to its head of consumer banking, Brendan Coughlin, and chief financial officer, John Woods. <\/p>\n They are in the horse race to replace current CEO and Chairman Bruce Van Saun, the Rhode Island-headquartered bank said this week. But he hasn\u2019t announced a retirement date, and the company hasn\u2019t signaled his exit.<\/p>\n Accordingly, the Citizens board on Thursday gave Coughlin a mixed cash-and-stock award valued at $12 million and gave Woods an award valued at $7 million. The awards are a blend of time-based restricted stock units, performance share awards, and cash.<\/p>\n Here\u2019s the rub: The performance share units and restricted stock units won\u2019t vest for another three years. And Coughlin would have to pay back $2 million and Woods would be on the hook for $1 million\u2014the size of their respective cash bonuses\u2014if they resign or get fired within three years. The \u201cleadership succession awards\u201d are meant to keep Coughlin and Woods in their seats and off the market until 2027.<\/p>\n \u201cGiven the strength of our leadership team and the success in transforming our business our executives are highly attractive in the market,\u201d said the Citizens board this week. \u201cIn addition, the board has deemed it critical for the company to retain key executives who have been identified as potential medium-term CEO succession candidates.\u201d<\/p>\n The varying sizes of the awards were intentional, the company said, and designed so that both executives would have comparable levels of equity ownership in the bank. Coughlin joined Citizens in 2020, and has less outstanding equity than Woods, who assumed his position in March 2017. The bonuses are on top of the $3.9 million the bank paid Coughlin and $4.3 million to Woods in 2023, company disclosures show<\/a>.<\/p>\n Van Saun, 66, has been the chairman and CEO since 2013 and chairs the bank\u2019s executive committee.\u00a0<\/p>\n Citizens declined to comment beyond the financial filings.\u00a0<\/p>\n<\/div>\n\nSubscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up<\/a> for free.<\/div>\n<\/div>\n