Following the financial crisis Mr Pandit pledged to take a $1 salary until Citigroup returned to a making a sustainable profit.
The bank saw a $1.3 billion profit during the final quarter of 2010 and posted $10.6 billion as its total yearly profit.
Richard Parsons, chairman of Citigroup said in a regulatory filing made on Friday (January 21st) that the board was “very pleased” with how the bank had worked under the leadership of Mr Pandit.
“Vikram has worked tirelessly to put Citi back on the right track, spearheading a restructuring that has returned the company to profitability and positioning the company for future growth,” he said.
Citi received $45 billion from the government in bailouts to help keep it afloat in the wake of the global financial crisis.
Mr Pandit’s pay rise was hinted at by the board earlier in the year and will be immediately effective.
By Jim Ottewill