While still partially owned by U.S. taxpayers, Citigroup (NYSE:C) said Friday it would grant stock rewards to 25 of its highest ranking officers, including CEO Vikram Pandit. Six of Citi's highest-ranking employees will see salary increases.
Of the top employees to receive pay increases, the company disclosed that Citi’s chief financial officer, John Gerspach, will make $347,222 a month; $500,000 a month will go to Edward Kelly, Citi’s vice chairman; $750,000 a month for Institutional Clients CEO John Havens; $620,909 a month to Citi Consumer Banking CEO Manuel Medina-Mora Council; and Citi CEO of Europe, Middle East and Africa Alberto Verme will make $502,365 a month.
No stock salary will be paid to Vikram Pandit, chief executive officer, whose salary remains $1 per year for 2010. However in a statement, Citi chairman Dick Parsons said “the Board intends to compensate Vikram commensurate with the job of CEO of Citi.”
Citi is still partially owned by U.S. payers since being bailed out at the height of the financial crisis in late 2008. However the Treasury Department has said it plans to completely sell its stake in Citi by the end of the year, legally unbinding the bank from the current regulatory rules regarding executive pay.
Citi’s rise in executive pay is likely to be controversial, as the bank remains under taxpayer help and Citi shares remain well below their mid-2008 levels despite recovering financial markets.