Citigroup Chief Receives $6.4 Million After Getting Dumped

Vikram Pandit, former Citigroup chief executive, received a $6.4 million bonus after he was ousted last October. According to Citigroup, the bonus is part of his incentive package for work done in 2012.

He is also expected to collect his deferred stock and cash awards, which is valued at about US$8.8 million.

Pandit was removed from his position in October after Citigroup board maneuvered to have a new chief installed. Sources said that Citigroup chairman Michael O’Neill worked the backdoors to have Pandit replaced.

Aside from Pandit, former chief operating officer John Havens was also removed from his post. Havens stands to receive some US$6.8 million as incentive for his work for the year. His cash awards and deferred stock is valued at close to US$9 million.

Michael Corbat is now the chief executive of Citigroup.

But while the compensation for Pandit and Havens appear big, they are forced to forfeit the rest of their compensation packages. Pandit will forfeit some US$24 million.

Pandit is best known for leading Citigroup during the 2007 financial crisis, one of the most turbulent times in Citigroup’s history. Through his leadership, he was able to secure a US$45 billion stimulus fund from the US government.

Pandit also took a yearly salary of US$1 to help the bank in those turbulent times. Citigroup has now bounced bank and is profitable again.

Some industry observers said the ouster of Pandit leaves a bad taste in the mouth, considering how he played a crucial role in saving Citigroup.