The board of Citigroup has awarded $6.65 million to Vikram Pandit after unexpectedly ousting the chief executive last month.
Mr. Pandit will receive the money as part of an “incentive†package for his work during 2012. He will also continue to collect his deferred cash and stock awards from the previous year, a package that it currently valued at more than $8.8 million.
In a surprise move, Mr. Pandit resigned October, a departure that was orchestrated for months by the bank's board. The board's powerful chairman, Michael E. O'Neill, maneuvered behind the scenes to curry support with other directors and replace Mr. Pandit. As part of the shake-up, the board also forced out John Havens, the chief operating officer. Michael L. Corbat was named as the new chief executive.
Since Mr. Pandit and Mr. Haven abruptly left the company, they will forfeit the remainder of their retention packages, which were outlined last year. For Mr. Pandit, that amounts to roug hly $24 million in lost compensation, according to a person with knowledge of the matter who could not speak publicly.
Mr. Pandit led the bank through a turbulent chapter in its history. After taking over in 2007, he navigated the bank from near collapse during the financial crisis when the had to secure a $45 billion lifeline from the federal government. The bank's health was so dire that Mr. Pandit opted to take a token $1 annual salary.
During his time as chief executive, Mr. Pandit received $56.4 million in total direct compensation, according to the research firm Equilar. In addition, Mr. Pandit got a hefty payout of $165 million when Citigroup purchased Old Lane Partners, the hedge fund he co-founded.
