Citigroup (NYSE:C), which has been bailed out by the federal government twice and has shed tens of billions of dollars in market value in recent years, is finally making money. But that doesn't mean the bank's new-found wealth is trickling down to its executives in the form of year-end bonuses.

Overall, bonuses at financial services firms are expected to hit record levels, but at individual banks, traders and bankers aren't seeing record paydays. At JPMorgan (NYSE:JPM), for instance, CEO Jamie Dimon has to spread his bonus pool over larger numbers of people, meaning that bonuses at the firm will be slightly lower than last year, FOX Business has learned.

At Citi, it's the bonus formula that is squeezing many paychecks, according to people at the firm. Citi, according to one senior trader, is shelling out half of its bonus money in stock and half in cash. The stock portion "vests," or is available for the executive to take possession, in five years, this person said. In terms of the cash portion of the bonus, only 20% of it is available immediately; 30% of this executive's bonus will not be granted for two years.

A Citi spokeswoman did not deny the bonus structure.

The bonus formula, in which 80% of an executive's salary is paid out over a number of years, comes amid conflicting reports over the exact nature of Citi's 2010 bonus structure. Some media reports have said that up to 65% of bonuses at Citi would be paid in cash. It's also unclear whether Citi is using different formulas as part of its bonus structure because these numbers aren't publicly disclosed.

Citi does disclose the salaries of its top executives. The firm's CEO, Vikram Pandit, will receive a salary of $1.75 million, up from a mere $1 in 2009 after Citi recorded its first yearly profit since 2006. He said he won't take a bonus this year, but the firm's most senior 15 executives will; they will divvy up a bonus pool of about $50 million, the firm said.

Bonuses are a controversial subject for Citi given the level of financial assistance needed to support the firm, which nearly went bankrupt during the financial crisis. As part of the assistance, the US government took a massive equity stake in the firm, which it has just sold.

The controversy of a bailed out bank handing its employees millions in bonuses certainly contributed to the stingy formula; according to one person close to the firm, executives are complaining that they barely have enough cash given to them this year to pay their taxes.

"Just do the math," this person said. "You get a bonus of $1 million, just 20% of it you receive on the pay date. You're left with $200,000 cash and half of that is taken in taxes. That's why these guys are so pissed."