Citi’s Pandit gets $15-m pay package for 2011

Citigroup’s India-born CEO, Mr Vikram Pandit, has received nearly $5 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.

According to a regulatory filing by Citi, Mr Pandit’s pay package for 2011 included a salary of $1.67 million, a cash incentive of $5.33 million and stock options valued at $7.98 million, totalling to $14.98 million.

This is the first time Mr 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.

Mr 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 $45 billion in US Government bailout funds.

Citigroup reported earnings of $11.1 billion in 2011, besides, the bank has posted eight consecutive quarters of profitability. In 2010, the bank’s net income was $10.6 billion in 2010 against a loss of $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.