Citigroup Awards Pandit $3.7 Million in Stock
Citigroup Inc. (C), the third-biggest U.S. bank by assets, awarded Chief Executive Officer Vikram Pandit about $3.7 million in stock as the firm reported a 6.4 percent increase in full-year profit.
The bonus was among shares the New York-based lender awarded this week to 12 executives, whose grants were described in regulatory filings yesterday. The awards had a total value of almost $25 million, based on the closing price of the shares on Jan. 17, when Citigroup posted 2011 net income of $11.3 billion, Pandit’s second profitable year as CEO.
The award is the latest payout for Pandit, 55, since the bank returned to profitability. Last year, when Citigroup shares slid 44 percent, he received a base salary of $1.75 million and a retention plan that could be valued at more than $40 million. In July, he received the remaining $80 million of the $165 million that Citigroup owed him from the bank’s 2007 buyout of his Old Lane Partners LP hedge fund.
“We made solid progress in 2011,” Pandit said in a statement announcing fourth-quarter results. “We are increasingly focused on driving earnings through our core franchise and beginning to return capital to our shareholders this year.”
Chief Operating Officer John Havens received an award valued at $3.47 million while consumer-banking boss Manuel Medina-Mora’s award was $2.64 million, the filings show. Chief Risk Officer Brian Leach’s award was $2.36 million.
Corbat, Callahan
Michael Corbat, who was appointed head of the bank’s operations for Europe, Middle East and Africa in November, received shares valued at $2.08 million, as did Don Callahan, the bank’s chief administrative officer.
Pandit is cutting 5,000 jobs and seeks to cut as much as $3 billion from the bank’s expenses this year as he seeks to control costs. Sales at the company’s investment-banking and trading operations, overseen by Havens, declined for the year amid investor concern that the most indebted European nations could default.
Citigroup shares fell 28 cents, or less than a percent, to $29.05 at 11:38 a.m. in New York trading. The shares advanced 11 percent this year through yesterday.
Jon Diat, a company spokesman, declined to comment.
To contact the reporter on this story: Donal Griffin in New York at dgriffin10@bloomberg.net
To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net
Citigroup CEO Vikram Pandit
Munshi Ahmed/Bloomberg
Vikram Pandit, chief executive officer of Citigroup Inc.
Vikram Pandit, chief executive officer of Citigroup Inc. Photographer: Munshi Ahmed/Bloomberg
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