by Christopher Freeburn | November 12, 2012 12:22 pm
Citigroup (NYSE:C) will pay its former CEO $6.7 million for 2012. Vikram Pandit, who resigned last month, will not receive certain other bonuses that were included in a compensation package, valued at $40 million, that the bank agreed to in 2011, Bloomberg noted.
Pandit replaced Charlies Prince, who stepped down as CEO and chairman as losses from subprime mortgages mounted in 2007. Citigroup later accepted a federal bailout of $45 billion. Pandit was ousted in October after the board accused him of mismanagement and damaging the bank’s reputation.
A bank official noted in regulatory filings that its board of directors felt the payment for Pandit‘s efforts during the year was justified, but that the former CEO would not receive severance payments and had forfeited other financial awards that he would otherwise have been due.
The former CEO will retain millions of dollars worth of deferred shares. During his tenure at the bank, Pandit collected about $56 million in compensation, not including the $6.7 million just granted by the board.
Citigroup shares rose about 1% in Monday midday trading.
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