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