- The Washington Times - Monday, March 16, 2009

NEW YORK (AP) - Citigroup paid its CEO Vikram Pandit compensation valued at $38.2 million last year, according to a regulatory filing.

The bulk of the compensation, however, was $37.3 million in stock and option awards granted in January 2008, when Citigroup’s shares were worth about $25. They are now worth around $2.

Nearly $35 million of Pandit’s stock and options awards were sign-on bonuses, and the other $2.5 million were retention awards.

Pandit became CEO of the troubled bank in December 2007, as the bank was recording the first of five straight quarterly losses. Citigroup has since gotten $45 billion in federal funding, and government backstops on a pool of assets worth more than $300 billion.

Like CEOs of other banks that have gotten federal money, Pandit received no cash bonus. Neither did Citigroup’s chief financial officer, Gary Crittenden.

Pandit’s 2008 salary was $958,333, and his other compensation amounted to $16,193. That figure includes $2,393 for ground transportation and $13,800 in 401(k) contributions.

Pandit and the four other most highly paid executives were not compensated for personal use of company aircraft.

The bank did set aside big cash retention bonuses, though, for other executives last year.

According to the regulatory filing, Citigroup’s co-head of global markets James Forese is eligible for a $5.3 million bonus. The CEO of the Asia Pacific region, Ajaypal Banga, can get a bonus of $3.6 million, and Vice Chairman Stephen Volk can also get a bonus of $3.6 million.

These deferred cash retention awards, however, vest over a four-year period, and the executive must be employed on the vesting dates to get the payment, the filing said. These officers did not get any currently payable cash awards for 2008, according to the filing.

The Associated Press’s total pay calculations include executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

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