Vikram Pandit shocked everyone on Wall Street today when he resigned as CEO of Citigroup.
Some people are speculating that it’s possibly a dispute over compensation.
Back in April at the bank’s annual meeting in Dallas, Citigroup shareholders voted to reject Vikram’s board-approved $14.9 million pay package in 2011, according to a Wall Street Journal report.
According to the Journal, the non-binding shareholder vote on executive pay packages was mandated by Dodd-Frank and it’s supposed to be held at least once every three years. What’s more is it doesn’t require executives to give back pay they already received, the report said.
In 2009 and 2010, Pandit was paid $1 as he lead the bank through the financial crisis.
Bloomberg News’ Donal Griffin breaks down Pandit’s total pay since taking the helm at Citi.
If no changes are made to Pandit’s compensation package, Citigroup will have paid him about $261 million in the five years since he became CEO, including his personal compensation and about $165 million for buying his Old Lane Partners LP hedge fund in 2007 in a deal that led to his becoming CEO. The bank shut Old Lane soon after Pandit took the post, causing a $202 million writedown.
Ok. That’s a lot.
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