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Vikram Pandit Bottom Line: Over $260 Million For A 90% Stock Drop

Tyler Durden's picture




 

Here is the bottom line. From the day Pandit took control in December 2007 until today, C stock is down 90%...

...Even as Pandit has been paid a total of over $260 million during his CEO tenure, even including his famous $1 comp received in 2010. While CEO of Citigroup in 2007, Vikram Pandit earned an annualized compensation of $3,164,320, which included a base salary of $250,000, stocks granted of $2,914,320, and options granted of $0. In 2008, he earned a total compensation of $38,237,437, which included a base salary of $958,333, stocks granted of $28,830,000, and options granted of $8,432,911. In 2009 he received total compensation of $128,751, including base salary of $125,001; In 2010 he received total compensation of $1,00; In 2011 he received total compensation of $14,857,103 including base salary of $1,671,370. Oh, and this number includes the $165 million Pandit received for his low performing hedge fund which was purchased by Citi in 2007, and was closed by Citi a few months later for epic underperformance. (via Proxy Statement and Wiki).

A briefer summary comes from Bloomberg 

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.

Not a bad deal for a guy who destroyed virtually all the shareholder value entrusted to him (although something was surely some other guy's fault. It always is - just ask the president).

In other news, here is Dick Bove's recommendations on Citi in the past few years...

And, of course, Jim Cramer from yesterday:

There are a lot of reasons to fear the banks, Jim Cramer told Debra Borchardt at TheStreet.com Monday, but when it comes to Citigroup (C), things are a lot better than they look.

 

Cramer said Citigroup had a great quarter with great revenue growth, and the company is taking share overseas. But perhaps most impressive is Citigroup's emerging-markets business, which is seeing tons of growth even in countries like Mexico, which is often thought of as a failed state.

 

 

Investors may continue to worry about the elections, the fiscal cliff and the collapse in of technology profits, but when it comes to the banks, Cramer said, Citigroup is the one to own.

#Timestamped.

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Tue, 10/16/2012 - 09:19 | 2894024 francis_sawyer
francis_sawyer's picture

Encore?...

I'm still giving Meredith Whitney props for calling out Chuck Prince...

Tue, 10/16/2012 - 09:19 | 2894030 GetZeeGold
GetZeeGold's picture

 

 

By this afternoon that's gonna seem cheap - Rollover

Tue, 10/16/2012 - 09:23 | 2894043 francis_sawyer
francis_sawyer's picture

Thanks to the largesse of the US taxpayer ~ Prince Alwaleed bin Talal didn't see his investment go to zero...

Tue, 10/16/2012 - 09:27 | 2894047 MillionDollarBonus_
MillionDollarBonus_'s picture

You can complain about limited liability for the actions of executives all you like, but the truth is that without LLCs there would simply be no investment or economic activity whatsoever. Nerdy Zerohedgers need to suck it in and deal with it because LLCs are here to stay, and will continue to be treated as individuals under the law because this is the only sensible way to limit the risks undertaken by equity investors.

Tue, 10/16/2012 - 09:29 | 2894068 EscapeKey
EscapeKey's picture

For a change, I actually agree with something you post.

As an entrepreneur, without LLCs, being held personally liable for mistakes we make, there will be a hell of a lot less start-ups.

At the very least, there will be additional insurance expenses to keep up with. But no doubt tons of law with exciting loopholes for the insurance companies to back out of.

Tue, 10/16/2012 - 09:33 | 2894082 francis_sawyer
francis_sawyer's picture

just what we need... MORE 'shysters' to go along with the executive board members robbing shareholders blind... I guess that's why the deli-takeout business thrives as well... Good call MDB...

Tue, 10/16/2012 - 09:36 | 2894092 Hard1
Hard1's picture

Tak the money and ruuuuuuun bitchez!!!

Tue, 10/16/2012 - 09:50 | 2894288 francis_sawyer
francis_sawyer's picture

Billy Mack is a detective down in Texas

You know he knows just exactly what the facts is

He ain't gonna let those 2 escape justice

He makes his livin' off of the people's taxes...

~~~

http://www.youtube.com/watch?v=-WCFUGCOLLU

Tue, 10/16/2012 - 10:47 | 2894629 gmrpeabody
gmrpeabody's picture

It was entertaining to watch Sheila Bair mop the floor with the CNBC crew on this subject.

+1 to her...CNBC has become the apollogists for WS and the banks, she would have no part of it..., even laughed at them. Classic!

Tue, 10/16/2012 - 09:38 | 2894099 nope-1004
nope-1004's picture

No wonder Pandit's leaving - He was kicked out!  The above proves Pandit is a fraud.

Surprised it took the board this long to see who he really is.

 

 

Tue, 10/16/2012 - 10:06 | 2894477 smlbizman
smlbizman's picture

yeah, no doubt kicked right out into a nice new lobbiest firms highest paid deuche bag...

remember these guys never go away...they just relocate ,usually into a better gig....

Tue, 10/16/2012 - 10:22 | 2894554 SilverDosed
SilverDosed's picture

Probably end up running something unimportant like the Treasury.

Tue, 10/16/2012 - 13:26 | 2895298 TheFourthStooge-ing
TheFourthStooge-ing's picture

By all current corporate and financial "standards", Pandit's tenure as CEO was a smashing success. He'll be in high demand and can basically write his own ticket.

Tue, 10/16/2012 - 09:35 | 2894090 Oh regional Indian
Oh regional Indian's picture

curious, why these in-competent Indians are/were being put in charge of mega-banks.

Anshu Jain at DB was another... scapegoats?

Deutsche Bank will in the future be co-managed by Anshu Jain, a cricket-loving investment banking hotshot from India. Because he speaks little German and has no political contacts, however, he will be flanked by a German co-executive -- and watched over by current CEO Josef Ackermann, who is to head the supervisory board.

Somethings fishy...

ori

Tue, 10/16/2012 - 10:49 | 2894660 gmrpeabody
gmrpeabody's picture

OMG..., you're playing the race card?

Tue, 10/16/2012 - 11:07 | 2894717 walküre
walküre's picture

since you're inviting, I'm biting and here are some possible reasons:

 

 

- Indians invented fictional "creative" accounting

- every grain matters and they learn to count 'em from early on

- best multitaskers the world has to offer because of the higher example from Shiva

- their culture is a dog eat dog shit culture without any regard for community or the next guy

- cast system is already ingrained in their programming.

 

- Indian bank CEOs have no scruples, know no moral hazard

- Indian bank CEOs make Jews blush?

add as you see fit

Tue, 10/16/2012 - 11:27 | 2894792 ParkAveFlasher
ParkAveFlasher's picture

I nominate this as best-on-thread.

Tue, 10/16/2012 - 12:34 | 2895085 DeadFred
DeadFred's picture

It's the karma system. Your house is being foreclosed because of something bad you did in a previous lifetime so I'm fully justified in dumping on you. You deserve it.

Tue, 10/16/2012 - 17:35 | 2896215 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

OK just a few observations, not intended to be racist but rather "cultural".

I've worked with lots of Indians, they're incredibly competent technically. Colonial England left them a very impressive educational system. But what they love to do is OVERCOMPLICATE things. It's never a "net-net" discussion, there's always "but we have to keep in mind these 47 other factors" which leads to endless complexity and time wasting.

I think it's because they have >1 million deities. There are always subtleties to consider when one deity might be influenced by these other 2,000 deities, who have a history of being affected by these 2 million other factors. As a result nothing in the universe is ever "simple". The country is unbelievable chaotic.

Monotheistic West has it much simpler

Tue, 10/16/2012 - 10:26 | 2894579 Hohum
Hohum's picture

EscapeKey,

Doesn't really matter whether a small business is a LLC if the proprietor has to guarantee a loan personally.

Tue, 10/16/2012 - 09:31 | 2894078 jcaz
jcaz's picture

LLC?   What the fuck are you babbling about now?   Go back to the kiddie table if you can't keep up with the big people talk.....

This is a gag, right?  You're just trying to look more stupid with every post just to amuse us, ya?

Tue, 10/16/2012 - 09:49 | 2894342 GetZeeGold
GetZeeGold's picture

 

 

This is a gag, right?

 

Well......yes......thought it went without say actually.

 

Tue, 10/16/2012 - 10:11 | 2894504 smlbizman
smlbizman's picture

how about vickram has to take his golden parachute and pull a felix and see how it works out for him.....

Tue, 10/16/2012 - 12:02 | 2894955 SanOvaBeach
SanOvaBeach's picture

I totally agree W/ your entire post.  Especially the part about nerdy ZH'ers.  It is easy to tell from many posts that some ZH'ers have no real business experiense and are still living at home.  Angry they can't find a job or are hopelessly underemployed.  They are angry (rightly so maybe) and spend their time pounding on a keyboard.  I have had many business'es and they have all been LLC'c so my ass was covered........

Tue, 10/16/2012 - 09:25 | 2894052 HoofHearted
HoofHearted's picture

Does Citi want to see my CV? I could have only lost 80% and cost them half as much. I'm just that good!

Tue, 10/16/2012 - 09:30 | 2894073 EscapeKey
EscapeKey's picture

You could have started by buying lots of puts.

Tue, 10/16/2012 - 15:11 | 2895792 Bananamerican
Bananamerican's picture

Obviously it's not about saving money, Hoofy....

As in hip-hop, where an endless series of clueless negro yoof dream of their chance to step up to the mic, grab crotch and mumble profanities...The IB wanna bees dream of the Booty Pandit pole position...

Munny for nuthin.

Shareholder value? Lawlz

Tue, 10/16/2012 - 10:32 | 2894607 jekyll island
jekyll island's picture

That chart looks bullish for gold.

Tue, 10/16/2012 - 09:37 | 2894100 monkeyboy
monkeyboy's picture

I'd buy that for a dollar!

Tue, 10/16/2012 - 10:26 | 2894580 francis_sawyer
francis_sawyer's picture

That's the laugh... It probably would be a dollar if they hadn't done the reverse split to keep shoveling it to 401k momos after it threatened to permanently stay under the $5 mark...

Tue, 10/16/2012 - 09:44 | 2894191 williambanzai7
williambanzai7's picture

SHITI 4-1-9

Tue, 10/16/2012 - 09:50 | 2894365 GetZeeGold
GetZeeGold's picture

 

 

Looking good Mr. Vegas!

Tue, 10/16/2012 - 09:51 | 2894384 Quinvarius
Quinvarius's picture

I hope that is a movie poster.  It looks like it will be hilarious.

Tue, 10/16/2012 - 09:53 | 2894434 williambanzai7
williambanzai7's picture

One big shitty roadshow. That's what this guy was.

And he gets the last laugh.

Tue, 10/16/2012 - 09:21 | 2894035 CPL
CPL's picture

He's adding executive value by recycling oxygen in his office for the office plants.

Tue, 10/16/2012 - 09:55 | 2894441 slaughterer
slaughterer's picture

SHORT 10,000 shares $37.16

Tue, 10/16/2012 - 10:04 | 2894471 kliguy38
kliguy38's picture

but, but, if'n we don't pay them this ammount then we're gonna lose um to banks overseas.......

Tue, 10/16/2012 - 15:13 | 2895803 Bananamerican
Bananamerican's picture

What? the "talent"?

Tue, 10/16/2012 - 10:48 | 2894650 Atlantis Consigliore
Atlantis Consigliore's picture

Breakups: Value of BAC, C,  JPM, broken up; Wells;

investment banks and bank banks,   too big to fail eradicated next administration

 

along with the FED reserve employment mandate,...rates soar. to free mkt levels. 

Tue, 10/16/2012 - 13:04 | 2895212 Chuck Walla
Chuck Walla's picture

For just a mere 10% of that, I'd have run it into the ground for them...

FORWARD SOVIET!

Tue, 10/16/2012 - 09:18 | 2894026 GolfHatesMe
GolfHatesMe's picture

Enron SPV profit sharing model?

Tue, 10/16/2012 - 09:37 | 2894041 Cult_of_Reason
Cult_of_Reason's picture

Was Citi cooking the books? Maybe Mayo was right after all?

 

Analyst: Citigroup Is Cooking the Books

An all-out war has broken out between Citigroup CEO Vikram Pandit and a prominent securities analyst who is saying that the big bank may be cooking the books by inflating its earnings through an accounting gimmick, FOX Business Network has learned.

The analyst, Mike Mayo, of the securities firm CLSA, has been telling investors that Citigroup (NYSE:C) should take a writedown, or a loss on some $50 billion of “deferred-tax assets,” or DTAs. That is a tax credit the firm has on its financial statement that Mayo says is inflating profits at the big bank by as much as $10 billion.

http://www.foxbusiness.com/markets/2010/08/25/analyst-citigroup-cooking-books/

Tue, 10/16/2012 - 09:41 | 2894136 nope-1004
nope-1004's picture

Guaranteed they're cooking the books.  And so is JPM, Wells, MS, GS, on and on.

 

Tue, 10/16/2012 - 09:46 | 2894225 SuccorMoney
SuccorMoney's picture

The Fed is providing the Hamburger Helper for all their books.

Tue, 10/16/2012 - 09:57 | 2894453 Metalredneck
Metalredneck's picture

Bidness as usual, bitchezz.

Tue, 10/16/2012 - 11:22 | 2894778 Joe Davola
Joe Davola's picture

If you ain't cookin', you ain't tryin'

Tue, 10/16/2012 - 09:22 | 2894045 spastic_colon
spastic_colon's picture

yep - and the magical act of vanishing money (perfect use for a hedge fund) - he learned from corzine

Tue, 10/16/2012 - 09:19 | 2894029 LULZBank
LULZBank's picture

Thats what Im talking about Bitchezz!!!

Oh, and pandit also did receive $165 million for his low performing hedge fund which was purchased by Citi in 2007, and was closed by Citi a few months later for epic underperformance.

Tue, 10/16/2012 - 09:21 | 2894037 LULZBank
LULZBank's picture

 

Investors may continue to worry about the elections, the fiscal cliff and the collapse in of technology profits, but when it comes to the banks, Cramer said, Citigroup is the one to own.

I guess we know what that means. We just need to work out the timeline now.

Tue, 10/16/2012 - 09:22 | 2894039 kito
kito's picture

What about his federal employee pension.....did you calculate that into his compensation???????.....

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