Citigroup Inc., the bank 18- percent owned by U.S. taxpayers, awarded more than $37 million in shares to six of its top executives and said it plans to raise Chief Executive Officer Vikram Pandit’s $1-a-year pay.
John Havens, head of the bank’s institutional clients group, would receive $9 million worth of shares on an annualized basis, according to a regulatory filing today. Manuel Medina- Mora, head of consumer operations for the U.S., will receive $7.45 million.
Vice Chairman Edward J. Kelly and Alberto Verme, co-head of the bank’s operations in Europe, the Middle East and Africa, will both receive $6 million annualized, according to the filing. John Gerspach, Citigroup’s chief financial officer, will receive $4.17 million. William Mills, who is Verme’s counterpart, received $4.86 million, according to Ed Skyler, a bank spokesman.
Pandit declined additional compensation, the bank said in the statement. Next year, “the board intends to compensate Vikram commensurate with the job of CEO.”
The lender is giving shares that can be quickly sold, or “stock salary,” to its 25 highest-compensated employees before deciding how much they get in bonuses at the end of the year, according to a statement from New York-based Citigroup. Citigroup’s $45 billion bailout subjected it to pay curbs developed by Kenneth Feinberg, who capped bonuses at one-third of the overall compensation.
“The board is very pleased with the progress that the management team is making in restoring Citi to profitability,” said Richard Parsons, the bank’s chairman. “Although we respect Vikram’s decision again to decline salary or an incentive award for 2010, we believe that his performance would merit a different outcome.”
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