This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pandit Gets Paid

NEW YORK (TheStreet) -- Ousted Citigroup (C) CEO Vikram Pandit is "not entitled" to a severance payment, but Citigroup late on Friday announced it had granted him an "incentive award."

While Pandit abruptly resigned as Citigroup CEO on Oct. 16, with chief operating officer John Havens also giving up his executive position that day, Citi said in its filing that both "have remained employed and received their regular pre-existing base salary and benefits," and would actually exit the company on Nov. 30.

On his way out the door, Pandit will receive an incentive award of $6,653,333, while Havens will receive a slightly higher award of $6,792,222.

The payments will be made with 40% in cash up front, with the remainder "delivered in four equal installments promptly following each of January 20, 2014, 2015, 2016 and 2017."

The company was careful to note that the bonuses were "subject to Citigroup's standard clawbacks applicable in the event of circumstances such as gross misconduct during employment or awards based on materially inaccurate financial statements."

Pandit "continue to vest in deferred stock and deferred cash incentive awards currently valued at approximately $8,825,000," as part of his compensation for 2011, according to the company, while Havens will see similar vesting, to the tune of $8,725,000.

After carefully engineering Pandit's ouster for several months, according to a New York Times report, Citigroup chairman Michael O'Neal graciously credited Pandit with steering the company "through the financial crisis, realigned its strategy, bolstered its risk management processes and returned it to profitability," while adding that "John's focus on our institutional businesses increased our capabilities and helped steer our clients through volatile times."

Investors will be looking for Citigroup's new CEO Michael Corbat to speed up Pandit's "good bank/bad bank" strategy of placing noncore assets within the company's Citi Holdings subsidiary and allowing them to runoff, in order to continue right-sizing the company's balance sheet, while freeing up more capital to return to shareholders.

Citigroup currently pays a nominal quarterly dividend of a penny a share. The Federal Reserve in March rejected the company's initial 2012 capital plan and later approved a revised plan that didn't include any additional return of capital.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs