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Citigroup CEO Walks off With $260 Million After His Bank Loses 88 Percent of Its Value

Wednesday, 17 October 2012 09:35 By Pat Garofalo, ThinkProgress | Report

Vikram S. Pandit, Citigroup's chief executive, during a hearing on Capitol Hill, Wednesday, February 11, 2009. (Photo: Doug Mills / The New York Times)Vikram S. Pandit, Citigroup's chief executive, during a hearing on Capitol Hill, Wednesday, February 11, 2009. (Photo: Doug Mills / The New York Times)Click here to support news free of corporate influence by donating to Truthout. Help us reach our goal of 750 donations by the end of this week!

Citigroup CEO Vikram Pandit abruptly resigned yesterday, leaving the helm of the bank that he guided through the financial crisis of 2008. For his five years of leading Citi, Pandit will receive compensation in the neighborhood of $260 million:

If no alterations are made to Pandit’s compensation package, Citigroup will have paid him about $261 million in the five years since he became CEO, including his personal compensation and about $165 million for buying his Old Lane Partners LP hedge fund in 2007 in a deal that led to his becoming CEO. The bank shut Old Lane soon after Pandit took the post, causing a $202 million writedown.

But while Pandit made off like a bandit, shareholders were not so lucky. Via Matt Yglesias, here’s Citigroup’s stock performance since Pandit took over:

 

101712v ch

 

Overall, Citi lost 88 percent of its value under Pandit. Earlier this year, the Wall Street Journal dinged Pandit for having the pay package that was most detached from his company’s performance, as a three-year decline of 27 percent coincided with his making $43 million. The Dodd-Frank financial reform law gave shareholders the right to hold a non-binding vote on executive compensation, and Pandit was the first bank CEO to get tagged with a vote of disapproval.

Originally published on ThinkProgress

Pat Garofalo

Pat Garofalo is Economic Policy Editor for ThinkProgress.org and The Progress Report at American Progress.


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Citigroup CEO Walks off With $260 Million After His Bank Loses 88 Percent of Its Value

Wednesday, 17 October 2012 09:35 By Pat Garofalo, ThinkProgress | Report

Vikram S. Pandit, Citigroup's chief executive, during a hearing on Capitol Hill, Wednesday, February 11, 2009. (Photo: Doug Mills / The New York Times)Vikram S. Pandit, Citigroup's chief executive, during a hearing on Capitol Hill, Wednesday, February 11, 2009. (Photo: Doug Mills / The New York Times)Click here to support news free of corporate influence by donating to Truthout. Help us reach our goal of 750 donations by the end of this week!

Citigroup CEO Vikram Pandit abruptly resigned yesterday, leaving the helm of the bank that he guided through the financial crisis of 2008. For his five years of leading Citi, Pandit will receive compensation in the neighborhood of $260 million:

If no alterations are made to Pandit’s compensation package, Citigroup will have paid him about $261 million in the five years since he became CEO, including his personal compensation and about $165 million for buying his Old Lane Partners LP hedge fund in 2007 in a deal that led to his becoming CEO. The bank shut Old Lane soon after Pandit took the post, causing a $202 million writedown.

But while Pandit made off like a bandit, shareholders were not so lucky. Via Matt Yglesias, here’s Citigroup’s stock performance since Pandit took over:

 

101712v ch

 

Overall, Citi lost 88 percent of its value under Pandit. Earlier this year, the Wall Street Journal dinged Pandit for having the pay package that was most detached from his company’s performance, as a three-year decline of 27 percent coincided with his making $43 million. The Dodd-Frank financial reform law gave shareholders the right to hold a non-binding vote on executive compensation, and Pandit was the first bank CEO to get tagged with a vote of disapproval.

Originally published on ThinkProgress

Pat Garofalo

Pat Garofalo is Economic Policy Editor for ThinkProgress.org and The Progress Report at American Progress.


Hide Comments

blog comments powered by Disqus