Citi’s Pandit will work for $1 in 2010 tooSeptember 25th, 2010 - 11:16 am ICT by IANS
By Arun Kumar
Washington, Sep 25 (IANS) Citigroup’s India-born CEO Vikram Pandit has decided to work for just $1 for the second year in a row.
Pandit, who has restored the ailing banking giant to profitability and brought it mostly out from under strict government scrutiny after a $45 billion rescue during the financial crisis, told the Citi board he wouldn’t accept any compensation above $1 for this year, the group said Friday.
Citi also announced it would be paying its top 25 executives by way of “stock salary,” or non-cash compensation.
Pandit’s salary will bounce back next year, however, regardless of what he wants. In a statement, Citigroup Chairman Richard Parsons said Pandit had restored the company to profitability and is well along in his efforts to shed assets and refocus the firm on a narrower set of priorities.
“Vikram’s decision is admirable but, beginning in 2011, the board intends to compensate Vikram commensurate with the job of CEO of Citi.”
Under the government’s Troubled Asset Relief programme, Citi received one of the biggest lines of assistance in 2008 and 2009. It is now close to completely ending that association with the Treasury planning to sell its last remaining holdings of Citi by the end of the year.
Citi says granting “stock salary” now allows it to decide on bonuses for 2010 at the end of the year. If Citi ends up paying for all 12 months of the year, that would add up to “stock salaries” for those executives ranging from $9 million to $4 million.
US business magazine Forbes said this is consistent with projections earlier this year by Wall Street compensation consultant Alan Johnson, who said the good news is pay is coming back to Wall Street after many senior executives did without last year.
(Arun Kumar can be contacted at email@example.com)
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- Indra Nooyi, Sanjay Jha among highest paid CEOs in US: Report - May 10, 2011
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- Amid tough times, Citibank to cut 4500 jobs - Dec 07, 2011
- Pandit's Citi makes profit with India sale - Apr 17, 2012
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- Vikran Pandit stays at Citi with $1 annual salary - Nov 18, 2009
- Vikram Pandit: 'Occupy Wall Street' sentiments understandable - Oct 13, 2011
- US executive pay packets go up even as economy slumps - Apr 15, 2009
- 'Occupy Wall Street' growing bigger by the day (Lead) - Oct 13, 2011
- Pandit's Citigroup reports first profitable year - Jan 18, 2011
- Pandit's Citi to return $20 billion in bailout money - Dec 14, 2009
- Pandit's Citi returns $20 bn in bailout funds - Dec 24, 2009
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