Citigroup’s Pandit May Reap $42 Million in Retention Plan

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Citigroup Inc. Chief Executive Officer Vikram Pandit stands to collect at least $42 million under his new retention-pay formula, assuming the bank’s earnings meet analysts’ estimates.

Pandit will get more than $16 million plus stock options if Citigroup hits its own, lower performance target for 2012, according to a regulatory filing by the bank yesterday. The package also includes $6.65 million in cash paid over time as a form of profit-sharing. If earnings next year reach the level analysts already expect, that portion of his payout will quadruple to about $26 million, based on the bank’s formula.