Citigroup CEO Vikram Pandit will soon start drawing a paycheck again. After two years of working for a $1 a year and no bonus, he will be paid a salary and bonus starting in 2011. Recall that he previously said he would not allow himself to be paid until he returned the bank to "sustained profitability." Citi has posted two straight quarters of profits.
As of now, the bank is still bound by pay restrictions imposed by former pay czar Kenneth Feinberg. The government has blessed a pay package for the top six executives under Pandit; they will receive between $7 million and $14.5 million for their work in 2010, according to CNBC calculations. The value of the shares they receive could well be worth more if the stock rebounds. I'm sure the vesting conditions favor a long-term outlooks.
The big issue is how the board will treat compensation issues once the government is no longer a massive shareholder. The restrictions will no longer apply, and we'll have to see if the board takes a new approach.
For more:
- here's the article
- the news came to light as part of a hearing by a judge who seemed to signal she will approve a settlement between the SEC and the bank if Citi improves its disclosure policies
Related Articles:
Does Goldman Sachs' relatively strong ten-year performance justify CEO bonuses?
Vikram Pandit, Banker of the Year
What is Vikram Pandit really worth?
Some execs make more than the CEO
No comments:
Post a Comment