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Citigroup CEO Walks Off With $260 Million After His Bank Loses 88% Of Its Value

Citigroup CEO Walks Off With $260 Million After His Bank Loses 88% Of Its Value

Written by Pat Garofalo

Citigroup CEO Vikram Pandit abruptly resigned today, leaving the helm of the bank that he guided through the financial crisis of 2008. For his five years of leading Citi, Pandit will receive compensation in the neighborhood of $260 million:

If no alterations are made to Panditís 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.

But while Pandit made off like a bandit, shareholders were not so lucky. Via Matt Yglesias, hereís Citigroupís stock performance since Pandit took over:

Overall, Citi lost 88 percent of its value under Pandit. Earlier this year, the Wall Street Journal dinged Pandit for having the pay package that was most detached from his companyís performance, as a three-year decline of 27 percent coincided with his making $43 million. The Dodd-Frank financial reform law gave shareholders the right to hold a non-binding vote on executive compensation, and Pandit was the first bank CEO to get tagged with a vote of disapproval.

This post was originally published by ThinkProgress.

 

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88 comments

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1:39AM PDT on Oct 23, 2012

romney would consider this a success !!!!

8:55PM PDT on Oct 19, 2012

MItch D It looks like someone thought Michael G's post violate Care2's Code of Conduct and it was removed. What exactly did he say?

@Tracie says We're in this boat because we've put so much power and responsibility for our lives in the hands of the government, instead of taking responsibility for ourselves.

Actually Tracie I think we're in trouble because our lives have been put in the hands of corporations who have bought favorable legislation that allows them to be nations unto themselves.

@Jamie D says 44 out of the 50 states permit corporations to deduct state income tax from employees and withhold it from the states for up to 25 years without telling employees.

Jamie, I don't disbelieve you, but I would like a link to the site that gave you that information so I can keep it in my files and use it in other discussions. Can you post a link please?

5:49PM PDT on Oct 19, 2012

I bet he gave a small chunk of his payoff to Romney/Ryan! Just a small thanks to men like them who make robbing the poor profitable and fun. Lynn C., you are SO right and I wish people would wake up and see. We now have technologies that would allow us to be independent from the oil/gas/coal industries. Small communities can work together to provide power for self-reliance on top of growing our own food organically. See, our reliance on corporate Amerikkka allows the 1% to control us much the same as emperors, kings and lords. We are bound to a thing called the dollar bill which is just another form of chain for slavery. No money then no food, no clothes, no shelter unless they throw you in jail for being homeless or poor.

9:36AM PDT on Oct 19, 2012

Awwww, I feel SO sorry for the poor 1%. Since he steals his money from taxpayers to begin with, perhaps paying more in taxes would only make sense and be fair. Are we "jealous and dislike" the 1%? Yes, in some ways! Why? Because they don't really EARN their wealth. It's inherited or stolen from the rest of us. It's not their success we hate but rather how they achieve it...on the backs of everyone else!

5:28PM PDT on Oct 18, 2012

I saw this headlined in the New York Times and figured it would be something like this. Or fear of prosecution. Or both.

2:43PM PDT on Oct 18, 2012

I honestly believe these bank CEOs should be paid on how well they perform. If the bank does well, they should be paid a decent salary, not an exorbitant one as happens now. This case is so horrible it will go down in the record books. The man ran the bank into the ground and walks away with millions! That doesn't happen to us lesser beings in the real world. Go figure.

1:31PM PDT on Oct 18, 2012

He doesn't deserve a single penny! If he had guts, he would donate the money!!!

12:39PM PDT on Oct 18, 2012

His bank goes into the toilet - downgraded by 88% and he gets a huge chunk of cash - 260 million dollars??? I don't get it! Help me to understand, he failed his bank and he gets a reward. I WANT HIS JOB!

8:35AM PDT on Oct 18, 2012

and low ranks employees have not received any pay raise third year in a row because "you know, there is the (holy) crisis and we all must tighten our belts to keep the company afloat".

3:18AM PDT on Oct 18, 2012

The poor have a way of ending up costing society even more if they are neglected than if they are decently cared for to begin with. There must be some level of modest comfort that would keep the poor in good health and fit for whatever work can be found for them. It should be possible to have a more or less free labor market for those who can land and hold a minimum wage job on their own, subsidized private sector jobs (employer gets two week free sample followed by federal government making up the difference between the worker's measured production and the minimum wage as long as the work lasts) for those private enterprise can use with such a subsidy, community service employment program (federal government pays wage and payroll taxes for workers placed with non-profit organizations and local governments) for those for-profits can't use but non-profits can use, and disability pensions for those that can't be placed in any work environment. We also need local government owned and managed low-income housing to keep section 8 private landlords honest with some competition. We have the technology to provide enough goods to support both such a program for the poor and a fair amount of high profits and bragging rights for the rich.

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