Drinks Are On Vikram Pandit This Weekend

Author:
Bess Levin
Updated:
Jan 14, 2019
Original:
Jan 21, 2011

From Citi's latest 8-K, which Vikula is going to have framed and hung in his office:

On January 18, 2011, the Personnel and Compensation Committee of the Board of Directors of Citigroup Inc. approved an increase in the annual rate of base salary for CEO Vikram Pandit from $1 per year to $1,750,000 per year, effective immediately. Richard Parsons, Chairman of the Board of Citigroup Inc., said that “the Board is very pleased with the progress that the company has made under Vikram’s leadership. Vikram has worked tirelessly to put Citi back on the right track, spearheading a restructuring that has returned the company to profitability and positioning the company for future growth. In light of these highly positive accomplishments, the base salary established for Vikram is merited.”

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If you didn't know Chief Executive Officer Vikram Pandit, you might think he enjoyed not being compensated for the work he does at Citigroup because for quite some time, he wasn't. And although the "I will only get paid $1/year until Citi turns a profit" exercise was fun for a while, he was pretty happy when the old jalopy started making money again, in part because it meant he could receive a paycheck. Then last April, his shareholders rejected the bank's executive pay plan, claiming the Big C "lets Chief Executive Officer Vikram Pandit collect millions of dollars in rewards too easily." And while it's possible that Citi shareholders are just a bunch of pricks who chose to overlook the fact that Uncle Vikula didn't collect squat for several years and once had an entire article written about the fact that lieutenants attributed a "new bounce in his step" to him daydreaming "the day when he is going to earn more than a $1 a year,” maybe they just assume that he doesn't care about getting paid either way? Anyway, here's Vickles, reminding anyone who forgot about the sacrifices he made and setting the record straight: “The board has this process with them, they’re going through it, and they are committed, as I am, to making sure that they resolve this,” Pandit said. “I want to get paid what the board thinks is right for me, for the job that I’ve done and for the incentives that they think I ought to have.” Pandit told lawmakers in 2009 that he would take a $1 annual salary until he restored the bank to profitability. Citigroup made a $21.7 billion profit for 2011 and 2010 combined, compared with a $29.3 billion loss for the two preceding years. “When the company was losing money, I stepped up and said I’ll take a dollar a year and I did, exactly for that reason, exactly the right thing to do,” Pandit said. For those having trouble separating the nice guy/don't want to offend anyone statement from what he's actually trying to say, a rough translation of the above would be: get me paid, bitch! Citigroup Will Resolve CEO Pay By End Of Year, Pandit Says [Bloomberg]

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[caption id="attachment_73871" align="alignleft" width="234" caption="Y'all can kiss this ear to ear grin good-bye"][/caption] In the spring of 2010, almost exactly two years ago to date, the New York Times reported that some of Vikram Pandit's top lieutenants had noticed "a new bounce in his step" and "a smile on his face," with one executive speculating that the Citi CEO's cheer could be attributed to the fact that he was starting to "see the day when he will earn more than $1 a year" within reach. On January 18, 2011, that day came. After essentially not receiving a salary since 2008, when he pledged to abstain from getting paid until Citi turned a profit, the board of directors approved "an increase in the annual rate of base salary for Vikram from $1 per year to $1,750,000 per year, effective immediately." It felt good. Really good. Know what doesn't? This crap. Citigroup investors rejected the bank’s executive pay plan, a first among the six largest U.S. lenders, amid criticism it lets Chief Executive Officer Vikram Pandit collect millions of dollars in rewards too easily. About 45 percent of the votes favored the plan, which Citigroup had argued would help attract and retain top talent, according to a preliminary tally at the New York-based firm’s annual meeting in Dallas today. While the vote isn’t binding, outgoing Chairman Richard Parsons said changes will be made. Citigroup Shareholders Reject Management’s Compensation Plan [Bloomberg]

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As you may have heard, earlier today, Citigroup announced that CEO Vikram Pandit would be resigning from his post at the bank, effective immediately, along with several longtime lieutenants. While the news came as a shock to Wall Street, it was assumed that on the inside, employees had been given some advanced warning and time to get used to the idea of life without Uncle Vik. That he hadn't just left in the middle of the night. That those hugs on the elevator Monday hadn't been their last. That he'd stashed something away for them to remember him by. A good-bye note. A glossy 8X10 photo to keep on their desks. SOMETHING. Apparently though, not so much. The news of Mr. Pandit's departure after five years atop the company came as a shock to Citigroup employees, including senior executives. In the firm's London office, some executives emerged from a meeting and read the news on their computers and Bloomberg terminals, well before the bank's internal memo was released. Soon a dozen employees were crowded in front of television monitors, following the story on financial business shows. Others were seen around a water cooler on the trading floor, discussing the news. Still others retreated to their desks to parse Citigroup's recent earnings release, looking for hints of internal conflict. "There's shock," said a Citigroup executive based in New York. "Even senior people were surprised." And while early reports suggested that Count Vikula had simply decided that Citigroup had come so far since he'd taken the gig five years ago that his work was done, and that while it was time to move onto the next stage of his life, he'd cherish the memories and the people he met at Citi, it now sounds like the split was a bit more acrimonious than that. Pandit abruptly stepped down following a clash with the New York company's board over strategy and operating performance at businesses including its institutional clients group, according to people with knowledge of the bank. At this time, some questions that need answering: * Does today's news change Meredith Whitney's opinion of the Big C, which, as of last April was that the thought of it still sickened her? * Where is the comment from Prince Alwaleed, AKA Citi's largest individual shareholder and Vikram's number one fan? * Is Sheila Bair happy? * Will Citi's food services employees treat new CEO Mike Corbat in the manner he's grown accustomed? The ladies who serve and prepare the food at Currier House all have crushes on senior Mike Corbat. The woman who checks off the names--the one sitting at the desk--smiles and winks at him. Then the greyish, plump one who serves the french onion dip giggles, when Corbat quips something that's not-so-funny. And during lunch, a man who also works in the dining room--he's the aged guy, with a slightly arched back who stands around in his red coat--comes over to Corbat and gives him some present all wrapped up in tinfoil. The guy in the red coat paternally pats him on the shoulder and walks away. "I just give them tickets to some of the games," he explains. You see, Mike Corbat is a 6-ft, 3-m, 230 pound dear. Whatever the case. Corbat--an all-Ivy offensive guard on the Harvard football team--may be a dear to the people who work in the dining hall, but he certainly isn't dear to his opponents. People who are dears on the field don't get contacted by at least a half-dozen teams informing him of the possibilities of his playing in the National Football League. * Could all of this have been different if those cheap fucks has just given him his Zen Garden? Citigroup CEO Vikram Pandit Resigns [WSJ] Mike Corbat: All-Ivy And A Perfect Team Player [Crimson via Counterparties] Earlier: Vikram Pandit: HAPPY.AS.A.CLAM Related: "...certain design elements have been nixed since the initial planning phase, including a Zen garden."

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Apparently everyone gets paid at Citi but Vikram.

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