The board of Citigroup has awarded $6.65 million to Vikram S. Pandit after unexpectedly ousting the chief executive last month.
Vikram Pandit was deposed last month in a boardroom coup.
Mr. Pandit will receive the money as part of an "incentive" package for his work during 2012. He will also continue to collect his deferred cash and stock awards from the previous year, compensation that the bank currently valued at more than $8.8 million.
In a surprise move, Mr. Pandit resigned in October, a departure that was orchestrated for months by the bank's board. Its powerful chairman, Michael E. O'Neill, maneuvered behind the scenes to curry support with other directors and replace Mr. Pandit. Michael L. Corbat was named the new chief executive.
As part of the shake-up, the board also forced out John Havens, the chief operating officer. Mr. Havens will receive $6.8 million in incentive pay for 2012, with previous deferred stock and cash awards valued at $8.725 million.
Since Mr. Pandit and Mr. Havens abruptly left the company, they will both forfeit the remainder of their retention packages, which were outlined last year. For Mr. Pandit, the lost compensation amounts to roughly $24 million, according to a person with knowledge of the matter who could not speak publicly.
Mr. Pandit led the bank during a turbulent chapter in its history. After taking over in 2007, he navigated the bank through the financial crisis, securing a $45 billion lifeline from the federal government. The bank's health was so dire that Mr. Pandit opted to take a token $1 annual salary.
Source: The New York Times | JESSICA SILVER-GREENBERG