Citigroup's CEO to receive $42m?

19 May 2011

The chief executive officer (CEO) of Citigroup could stand to pocket at least $42 million thanks to a new retention-pay formula, it has emerged.

A regulatory filing by the bank has shown that Vikram Pandit will collect the sum if the lender's earnings match those predicted by analysts.

Should Citigroup meet its own 2012 targets, the industry figure should come away with more than $16 million - plus additional stock options.

A $6.65 million form of profit sharing is also included in the package, which could increase to $26.6 million depending on performance.

Chairman of the group Richard Parsons said: "The long-term, multiyear, performance-based structure of this award is designed to retain Vikram as our CEO and reward him for future performance."

Bloomberg recently reported that Citigroup has been boosting its profits via a hedge fund that gambles the bank's money on mortgage debt - with its mortgage/credit opportunity fund increasing by 16 per cent in the first quarter of 2011.

By Tony Aynsley

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