Citigroup to pay former executives more than $15 million each

Fri Nov 9, 2012 6:18pm EST

Citigroup's CEO Vikram Pandit gives an interview on the floor of the New York Stock Exchange June 18, 2012. REUTERS/Brendan McDermid

Citigroup's CEO Vikram Pandit gives an interview on the floor of the New York Stock Exchange June 18, 2012.

Credit: Reuters/Brendan McDermid

(Reuters) - Former Citigroup Inc (C.N) CEO Vikram Pandit, who resigned last month under pressure from company directors, and former chief operating officer John Havens will receive more than $15 million each, the company said on Friday.

The sums were disclosed in a filing with the Securities and Exchange Commission.

The amounts were set in written agreements reached with the Pandit and Havens earlier in the day.

"Vikram and John made significant contributions to Citi during their five years of service," Citigroup Chairman Michael O'Neill said in statement included in the filing.

O'Neill said directors decided that it was fair for the men to receive incentive pay for the progress made in 2012. "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," he said.

For Pandit, the payments include $6.65 million for incentive pay for work in 2012 and deferred stock and cash incentive awards valued at $8.83 million for 2011, according to the filing.

Havens' payments include $6.79 million for 2012 and $8.73 million worth of deferred stock and cash incentive awards for work in 2011 and 2008.

The men will receive 40 percent of their 2012 payments immediately in cash, with the rest paid in installments stretching to January 2017.

(Reporting by David Henry in New York; Editing by Gary Hill and Marguerita Choy)

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Comments (5)
VeronicaLodge wrote:
Well, the good news is that they will have to pay a little bit more income tax on the $15 million. With that heartening news, we can all rest easy.

Nov 09, 2012 6:27pm EST  --  Report as abuse
QuietThinker wrote:
Absolutely shameless. They have already been paid way more than they were ever worth. That money belongs to the shareholders.

Nov 09, 2012 6:46pm EST  --  Report as abuse
Harry079 wrote:
“CEO Vikram Pandit, who resigned last month under pressure from company directors, and former chief operating officer John Havens will receive more than $15 million each”

Happy Happy Joy Joy!

Nov 09, 2012 6:53pm EST  --  Report as abuse
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