Citi's Pandit gets $15 million pay package for 2011
New York: Citigroup's India-born CEO Vikram Pandit has received nearly USD 15 million (about Rs 75 crore) as his compensation for 2011, as he got his first cash bonus in about four years at the global banking giant.
As per a regulatory filing by Citi, Pandit's pay package for 2011 included a salary of USD 1.67 million, a cash incentive of USD 5.33 million and stock options valued at USD 7.98 million, totalling to USD 14.98 million.
This is the first time Pandit has got a bonus at Citi and had also got only a token salary of one dollar for 2010. Soon after taking charge in December 2007, Pandit had also decided to forego his cash bonus at the bank.
"The committee awarded annual incentive compensation, in addition to salary, to Pandit for the first time in four years in a manner commensurate with his responsibilities and the success of his implementation of Citi's long term strategies," Citigroup said.
Pandit had pledged in 2009 to receive an annual salary of one dollar until the struggling Citigroup returned to sustained profitability. Massive losses during the financial crisis had forced the bank to take USD 45 billion in US government bailout funds.
Citigroup reported an earnings of USD 11.1 billion in 2011, besides, the bank has had posted eight consecutive quarters of profitability. In 2010, The bank's net income was USD 10.6 billion in 2010 against a loss of USD 1.6 billion in the previous year.
"Pandit has led Citi's return to profitability and has positioned the company for future growth. His numerous accomplishments are reflected in the company-wide achievements.
"... Pandit has championed in multiple forums Citi's mission to serve clients and stakeholders through Responsible Finance, conduct that is transparent, prudent and dependable," the company said. "He has led Citi as it has achieved well-managed risk and controlled growth. Citi reduced its exposure to European markets significantly throughout 2011.
"In the US mortgage business, risk controls were enhanced and the business executed innovative loss mitigation strategies to improve asset quality.
The consumer businesses took action to tighten unsecured underwriting criteria in emerging markets," it added.