Citi CEO to get a raise on $1 salary

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- Citigroup plans to begin paying its chief executive more money next year, whether he likes it or not.

CEO Vikram Pandit refused to accept more than $1 for his 2010 salary, which was the same amount he was paid in 2009. However, the bank's chairman said Friday that Citi plans to give Pandit compensation in 2011 that is "commensurate with the job of CEO."

Richard Parsons, the former CEO of Time Warner and current chairman of Citi's board of directors, praised Pandit's performance in returning the bank to profitability. He said Pandit had worked "tirelessly" to restructure the company, which was brought to its knees two years ago when the collapse of the housing market gave rise to a severe financial crisis.

"Although we respect Vikram's decision again to decline salary or an incentive award for 2010, we believe that his performance would merit a different outcome," Parsons said in a written statement.

Citi also said it has decided to give its top 25 executives stock-based salaries this year, even though it was no longer obligated to do so by U.S. authorities. Incentive payments, such as bonuses, for those executives will be determined later in the year.

Like many of the nation's top banks, Citi received billions of dollars in taxpayer aid during the financial crisis. As a result, the government restricted the amount of money it could pay executives until the bailout money was returned.

While Citi has since repaid its government loans, the U.S. Treasury Department still owns a significant stake in the company's common stock, which it plans to sell by the end of the year.

Under this year's financial reform law, Citi (C, Fortune 500) cannot award top executives incentive payments that total more than one third of their overall compensation while the U.S. is still a shareholder.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,804.80 26.65 0.15%
Nasdaq 4,765.38 16.98 0.36%
S&P 500 2,070.65 9.42 0.46%
Treasuries 2.18 -0.03 -1.27%
Data as of 5:44am ET
Company Price Change % Change
Bank of America Corp... 17.62 0.09 0.51%
Apple Inc 111.78 -0.87 -0.77%
General Electric Co 25.62 0.48 1.91%
Intel Corp 36.37 -0.65 -1.76%
Microsoft Corp 47.66 0.14 0.29%
Data as of Dec 19

Sections

New York Magazine reporter Jessica Pressler, who has been caught up in controversy this past week, will not be moving on to a new job at Bloomberg News. More

Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More

Forums in dark corners of the web sell the kinds of hacks that befell Sony. More

Unilever sued Hampton Creek over its egg-free mayonnaise spread Just Mayo. But the company behind Best Foods and Hellman's mayonnaise has now dropped the lawsuit. More

The income of the top 1% jumped significantly in 2012, far outpacing inflation. Not only did this group make a larger share of the country's income, their share of total taxes also jumped from 35% to 38%. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.