Pandit Received $14.9 Million in Total Compensation From Citigroup in 2011
Citigroup Inc. (C), the third-biggest U.S. bank, said it gave Chief Executive Officer Vikram Pandit $14.9 million in total compensation for 2011, including his first bonus since the lender almost collapsed in 2008.
The package included $1.67 million of salary and a $5.33 million cash bonus, the New York-based lender said yesterday in a regulatory filing.
The award reflects Citigroup’s return to profitability under Pandit, who became CEO in December 2007, the bank’s personnel and compensation committee said in the filing. The payout also rewards his performance last year, which he spent grappling with a revenue slump as the European sovereign-debt crisis roiled markets. The stock tumbled 44 percent, second- worst among the 24-company KBW Bank Index.
“Although Citi’s reported financial performance was mixed, underlying client trends point to continued progress on our operating goals,” the bank said. “The committee awarded annual incentive compensation, in addition to salary, to Mr. 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.”
The figures reflect calculations from the filing’s summary compensation table, which uses methods prescribed by the Securities and Exchange Commission.
Pandit is cutting 5,000 jobs to eliminate as much as $3 billion from costs this year. Revenue fell to $78.4 billion in 2011, a 9.5 percent decline from the prior year. Expenses, including compensation and benefits, gained 8 percent to $50.9 billion. Profit increased 4 percent to $11.1 billion.
The personnel committee is headed by Alain Belda, former CEO of Alcoa Inc., who is leaving the board in April. Other members include Chairman Richard Parsons, who will also resign from the panel, Diana Taylor, William Thompson and Michael O’Neill. The bank said O’Neill will stand for chairman.
Pandit’s payout is separate from a retention package the committee awarded to him in May, under which he stands to collect about $40 million, assuming the bank’s earnings meet analysts’ estimates.
Chief Operating Officer John Havens, who oversees the securities and banking division, or S&B, received about $13 million for 2011, including a $5 million cash bonus, the filing showed. Profit at the unit, which includes trading and investment banking, fell 24 percent to $4.9 billion last year.
“Although 2011 was a challenging year for Citi and particularly for S&B, Mr. Havens provided steady leadership, a focus on longer-term goals, and an emphasis on diligent risk management,” Citigroup said. “S&B achieved competitive results in a challenging global markets environment.”
Manuel Medina-Mora, consumer banking chief, received about $11.4 million, including a $4.2 million cash bonus. Profit at the regional consumer-banking unit jumped 33 percent to $6.2 billion in 2011, compared with the prior year.
Chief Risk Officer Brian Leach received $11.4 million while Chief Financial Officer John Gerspach was paid $7.2 million, the bank said.
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