This Day On The Street
Continue to site
ADVERTISEMENT
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

Pandit Gets Paid

NEW YORK ( TheStreet) -- Ousted Citigroup (C - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
C $53.28 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs