Citigroup awards $16 mn to Pandit for outstanding job

Under his (Vikrams) leadership,the management team has navigated Citi through the crisis,returned Citi to profitability and is executing a strategy for sustainable growth, the chairman of Citigroups board of directors,Richard Parsons,said,adding that long-term,multi-year,performance-based structure of this award is designed to retain Vikram as our CEO and reward him for future performance

The first part of the retention award is deferred stock valued at $10 million.

Pandit will receive the stock in three equal instalments in December of 2013,2014 and 2015 only if the company determines that he has satisfied objectives in three areas central to Citis future success.

The second component of the retention award is the Key Employee Profit Sharing Plan,under which the India-born CEO will get $6.65 million in cash payments. Pandit will receive the payments in two instalments,based on pre-tax income for 2011 and 2012 combined.

However,to be entitled to the $6.65 million payment,the combined income for the two years has to be at least $12 billion. The initial two-thirds of Pandit’s $6.65 million award will be payable on May 17,2013,and the remaining a year later.

The third component of the total compensation is 500,000 performance-linked stock options,worth about $6.5 million dollars. These stock options can be exercised in three equal annual instalments starting next year and have a 10-year term.