Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Search for Jobs

Index Last Change % Change
Dow 19,885.73 -5.27 -0.03%
Nasdaq 5,574.12 26.63 0.48%
S&P 500 2,274.64 4.20 0.18%
Treasuries 2.38 0.02 0.80%
Data as of Jan 14
Company Price Change % Change
Bank of America Corp... 23.01 0.09 0.39%
FMC Technologies Inc... 35.85 -0.15 -0.42%
Wells Fargo & Co 55.31 0.81 1.49%
Freeport-McMoRan Inc... 15.19 -0.08 -0.52%
Ford Motor Co 12.63 0.04 0.32%
Data as of Jan 13
Sponsors

Sections

Tech's FANG stocks -- Facebook, Amazon, Netflix and Google owner Alphabet -- are surging. Investors seem more excited about Donald Trump's stimulus and tax plans than worried about protectionist talk. But are the stocks too hot? More

Eight men now control as much wealth as the world's poorest 3.6 billion people, according to a new report from Oxfam International. More

With a federal election looming in Germany, Facebook is beginning to attach warning labels to made-up stories posted by German users of the web site. More

Many people won't be affected, but some minor changes will affect workers at both ends of the income spectrum. More