Citi awards Pandit, Havens more than $15 mn each
O'Neill said directors decided that it was fair for the men to receive incentive pay for the progress made in 2012
Former Citigroup Inc 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.
According to senior bankers, Pandit's shock resignation was under duress, a board coup, not a planned retirement. Did Pandit and Citi's board clash over his pay, his management or the bank's strategy?
Vikram Pandit may leave Citigroup Inc without a rich exit package, compensation experts say, although final terms of his departure likely will not be known for several days.