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Citi to raise Pandit's pay in 2011

Last updated on: September 28, 2010 15:26 IST

Citi to raise Pandit's pay in 2011

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As the table have turned, for the better, Citigroup announced recently that it is planning to give a huge salary hike to chief executive officer Vikram Pandit.

Earlier, in February 2009 Pandit had vowed that he would take home $1 annually until the bank returned to profitability.

According to the Wall Street Journal the bank has posted profit in the first two quarters of 2010, which is a good indicator that the Citigroup is back is action.

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Image: Citigroup CEO Vikram Pandit

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Citi to raise Pandit's pay in 2011

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Richard Parsons, the former CEO of Time Warner and current chairman of Citi's board of directors, praised Pandit's performance in returning the bank to profitability.

He added that Citi plans to compensate Pandit commensurate with the job of CEO.

"Pandit had worked "tirelessly" to restructure the company. The Board is very pleased with the progress that the management team is making in restoring Citi to profitability," said Parsons said in a statement.

How much will Pandit get? The exact figure is yet unknown.

JPMorgan chief Jamie Dimon received $17 million in 2009, including $1 million in salary. Bank of America CEO Brian Moynihan will take home a salary of $950,000 in 2010 (exclusive of bonus).

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Image: Citigroup office

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Citi to raise Pandit's pay in 2011

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As the US government owns 17 per cent stake in Citigroup, there are limits on how much it can pay its top executives.

The Emergency Economic Stabilisation Act of 2008, "restricts the bonuses for a bank's 25 highest paid executives to no more than one-third of the employee's overall compensation for a given year," reports the Wall Street Journal.

Citigroup is planning to raise the salaries of other top executives in 2011.

John Havens, head of the bank's institutional clients group, will get a salary of cash and stock of $9.5 million, with likely bonus of $4.75 million. Manuel Medina-Mora, head of consumer banking for the Americas gets $8 million, and a bonus of $4 million.

Chief Financial Officer of Citigroup John Gerspach will receive $4.17 million, and a bonus of $2 million.



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