After working for years for a token annual salary of $1, Citigroup's Indian American CEO, Vikram Pandit has received a $22.5 million retention package that's partly tied to the future performance of the banking giant."Vikram has done an outstanding job since coming on board as the financial crisis began," Citigroup chairman Richard Parsons said in a statement on Wednesday. "Under his leadership, the management team has navigated Citi through the crisis, returned Citi to profitability and is executing a strategy for sustainable growth.
"The long-term, multiyear, performance-based structure of this award is designed to retain Vikram as our CEO and reward him for future performance benefiting the company and our shareholders," Parsons added.
Pandit got deferred stock valued at $10 million on the day it was granted, according to a regulatory filing by Citi.
The award will vest in three equal installments at the end of 2013, 2014 and 2015 - but only if Citi's personnel and compensation committee decides Pandit has reached performance goals tied to regulatory capital and risk management, company culture and talent development, including succession, the filing explained.
Pandit also got a new profit-sharing plan that could pay him more than $6 million, depending on the future cumulative pretax profit of Citicorp in 2011 and 2012 - minus the cumulative income or loss generated by Citi Holdings in the period.