The third-largest U.S. bank, Citigroup has awarded its former Indian-American chief executive Vikram Pandit more than $15 million as settlement.
Pandit, who stepped down as CEO last month under pressure from company directors, will receive a payment including $6.65 million for incentive pay for work in 2012 and deferred stock and cash incentive awards valued at $8.83 million for 2011, Citigroup said in a filing with the Securities and Exchange Commission.
Former Chief Operating Officer, John Havens, who also resigned at the same time, will receive a similar amount. Havens will receive $6.79m for 2012 and deferred stock and cash incentive awards valued at $8.725 million for work in 2011 and 2008.
"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," Chairman Michael E. O'Neill said in the filing.
However, Pandit and Havens will forfeit the remainder of their retention packages as they abruptly ended their employment with the company. "While Citi will also honor all past awards that they are legally entitled to, there are no severance payments. Awards to which they are not legally entitled have been forfeited," O'Neill said. According to a New York Times report, the lost compensation for Pandit amounts to roughly $24 million, said a person who did not wish to be named.
Citi's new CEO Michael Corbat will receive a salary of $1.5 million and regular incentive awards and benefits for his service, the group said in the regulatory filing.
