Despite resigning abruptly last month, former Citigroup CEO Vikram Pandit is getting a $6.7 million bonus for the work he did for the bank in 2012.
The bank, who disclosed the payment to Pandit in a regulatory filing on Friday, also disclosed that they paid former Chief operating officer John Havens (who left at the same time Pandit did) $6.8 million, reports The Washington Post .
Citi explained that the payments are “incentive awards” and that the two executives will not be entitled to any severance payments because of their departures.
Pandit and Havens will each get 40 percent of the money immediately and then will receive the rest through installments until 2017. They will also continue to vest in deferred stock and deferred cash incentive awards they received while working for the company.
This means that Vikram Pandit, along with his $6.7 million bonus, will also have $8.8 million worth of stock and cash incentive awards with the company. Pandit joined Citigroup in 2007 and helped steer the bank through the financial crisis, according to USA Today .
He accepted $1 in compensation for his work in 2010, but, in 2011, his pay increased to $15 million, which is roughly in line with his counterparts. In Friday’s filing, Citi’s chairman, Michael O’Neill, stated that both executives made contributions to the company that warranted the payments to each. O’Neill explained:
“Vikram steered Citi through financial crisis, realigned its strategy, bolstered its risk management processes and returned it to profitability … based on the progress this year through the date of separation, the board determined that an incentive award for their work in 2012 was appropriate and equitable.”
While Pandit has received a $6.7 million bonus for his work with Citigroup, he has agreed not to become affiliated with another major bank or poach executives or clients from Citi for at least one year.
