Pandit, an alumnus from Columbia University, who became CEO in late 2007 has steered the company through the credit crisis and returned them to profitability. In 2009, when Citi was going through losses, Pandit slashed his salary to $1 a year until bank returned to profitability. The board decided to restore his salary to $1.75 million a year this January after Citi Bank had reported $10.6 billion profit for the year 2010.
"Vikram has done an outstanding job since coming on board as the financial crisis began. Under his leadership, the management team has navigated Citi through the crisis, returned Citi to profitability and is executing a strategy for sustainable growth." Richard D. Parsons, chairman of Citigroup, said.
Mr. Pandit will receive $10 million in stock in three equal parts: at the end of 2013, 2014 and 2015. Citi would also entitle him $6.7 million or more, if the unit earns more than $12 billion in 2011 and 2012.
He was also bestowed 5,00,000 stock options of which 3,00,000 comes with the strike price of $41.54 a share, 100,000 carry the strike price of $52.50 a share and 100,000 are valued at $60 a share.
“The long-term, multi-year, performance-based structure of this award is designed to retain Vikram as our CEO and reward him for future performance benefitting the company and our shareholders." Parsons said.
Today, Vikram Pandit is one of the highest paid CEO's in world.