Vikram Pandit losses millions in transition from Citigroup
Citigroup directors have awarded a $6.65 million bonus to ex-CEO of Citigroup Vikram Pandit after ousting from the job last month.
He will apparently receive the money as part of an incentive package for his work this year. John Havens, the COO who left at the same time, was given $6.79 million. Forty percent of the awards will be paid immediately in cash. The remaining 60 percent will be paid in deferred cash that will be delivered in four equal installments through 2017. Both men will also continue to collect his deferred cash and stock awards from 2011 (and 2008 in the case of Havens).
For Pandit, this is worth $8.8 million. For Havers, this is worth $8.7 million. But they are being forced to sacrifice a retention package, which means Pandit will not receive $24 million that was scheduled to be paid to him, according to media reports.
In awarding the bonuses, chairman Michael O'Neill wrote in a statement: "Vikram steered Citi through the financial crisis, realigned its strategy, bolstered its risk management processes and returned it to profitability...Based on the progress this year through the date of separation, the Board determined that an incentive award for their work in 2012 was appropriate and equitable."
It's unclear how Pandit feels about this. Most likely, he will accept what has been handed to him. It's hard to see him pursuing any legal action. He and Haven have apparently agreed to a One-year non-compete agreement.