Wall Street CEO Gets $6.7 Million Payout After Crashing His Company

Pat Garofalo
Think Progress / News Report
Published: Monday 12 November 2012
“Several Wall Street heavyweights have recently said that banks need to rethink the sky-high compensation they’ve been paying (which has helped exacerbate the nation’s income inequality).”
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Citigroup CEO Vikram Pandit was pushed out the door of his company in October after overseeing a precipitous decline in his bank’s value. Overall, Citigroup lost nearly 90 percent of its stock price during Pandit’s tenure. But that won’t stop Pandit from walking off with $6.7 million for his last year on the job:

Citigroup said Friday that the former CEO, who resigned last month in a management shakeup, will receive an “incentive award” of $6.7 million for his work at the bank this year.Former president and chief operating officer John Havens, who stepped down along with Pandit, is getting $6.8 million, according to a filing with the Securities and Exchange Commission.

The two men will also continue collecting deferred cash and stock compensation from last year, awards valued at $8.8 million for Pandit and $8.7 million for Havens.

The company suffered a profit loss of 88 percent during the third quarter, when Pandit supposedly earned his “incentive award.” During his time at Citi, Pandit made some $260 million in total compensation, even accounting for the year he took a $1 salary during the financial crisis.

Several Wall Street heavyweights have recently said that banks need to rethink the sky-high compensation they’ve been paying (which has helped exacerbate the nation’s income inequality). For instance, Morgan Stanley CEO called the financial industry “overpaid.” “There’s way too much capacity and compensation is way too high,” he said.



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ABOUT Pat Garofalo

Pat Garofalo is Economic Policy Editor for ThinkProgress.org at the Center for American Progress Action Fund. Pat’s work has also appeared in The Nation, U.S. News & World Report, The Guardian, the Washington Examiner, and In These Times. He has been a guest on MSNBC and Al-Jazeera television, as well as many radio shows. Pat graduated from Brandeis University, where he was the editor-in-chief of The Brandeis Hoot, Brandeis’ community newspaper, and worked for the International Center for Ethics, Justice, and Public Life.

Wall Street is cheating the

Wall Street is cheating the h-ll out of all the stockholders in this country. They can afford to hand out millions to the cretins that perpetrate failures in business since every transaction on Wall Street is profitable for them. Rather than let an insider blab to the world about their total hypocracy to the stockholders whose stocks rise and fall on the whims of imagination,i.e. hypothetical country in Europe is going to default, U.S is going over a financial cliff,etc. they pay out astronomical amounts of money to keep in-house secrets. I wouldn't have a 401K if you gave it to me free of charge because the Banksters on Wall Street would benefit from it in every way that they can manipulate it. The only reason the CEO's of this country are raking in millions is because We ,the People allow it.

You know when I get fired for

You know when I get fired for performance issues, I get a box and two weeks pay and the ability to use the Cobra health care program. So why are these guys getting more money than they can spend in several life times for destroying a company?

Where are the indictments for

Where are the indictments for screwing with money in the first place? $1 would be too much compensation for driving a company into the ground!!! Why and how are these banks able to survive paying these compensation packages...I don't believe they needed to be "bailed out" if this is how executives and ex-executives are being compensated after continuing to use poor judgement even after being "bailed out" by WE THE PEOPLE!!!

The constant justification

The constant justification for very high executive compensation is "Pay For Performance". Yet, the compensation that is typically most subject to criticism are in situations such as this in which the C-level execs continue to receive multi-million dollar packages while overseeing near complete destruction of share value and credibility of the companies they have lead and then benefit again when they are finally forced out. If this is Pay For Performance, I suggest that a large number of C-level execs, members of Boards of Directors, and the compensation consultants who advise them need to be sent to the corner with dunce caps on their respective heads and not allowed back into the game until they have finally memorized the Webster's dictionary definition of performance. Otherwise, start describing it as what it really is when this happens - a group of pseudo-capitalists who are little more than opportunistic, self-serving, mutually enabling, co-dependent parasites who are protecting each other while engorging themselves on their companies' resources at the expense of shareholders and employees and to the discredit of those among their executive peers who are actually delivering value.

It's now the standard

It's now the standard American way! Not only in biz but in politics. Nothing succeeds like failure!!!

ROmney and Ryan failed to make any sense. Therefore they were nominated.
Obama capitulates to Islamo-nazi regimes abroad and to Wall Street at home. Therefore he was re-elected.

OH GET OVER IT....WHAT IS

OH GET OVER IT....WHAT IS REALLY WRONG WITH THE RICH GETTING RICHER....IT IS THE TRUE WAY OF LIFE HERE IN AMERICA....IF YOU ALL DON'T LIKE IT,,,BECOME A WHITE COLLAR CROOK...OK....

Come on guys. 6.7 million to

Come on guys. 6.7 million to get fired isn't that much. That doesn't even buy a really nice summer house in Miami. Not only that but these people are "the Mustangs" of the human race. As such, they are ENTITLED to as much money as society can afford to give them. Think Kings and queens here. having 10-15 million a year net income isn't that much compared to others who make a lot more.

(Note to self: The average family in America lives on 40, 000 a year before taxes. 40k in one hand, 10 million in the other. Hmmm, yeah, that's pretty fair.)

It's probably better to give

It's probably better to give him the 6.7 Mil and let him walk rather than fire him and invite a lawsuit.

Where is the lawsuit for

Where is the lawsuit for taking the company value down? There had to be a "little" misrepresentation involved....

It's obscene that anyone

It's obscene that anyone receives this kind of 'Incentive award', even more so when that person or persons have overseen a reduction in a Company's stock value. There should be penalties not rewards for this kind of mishandling.
I'm aware that good salaries have to be used to attract talent, but talent is measured by results and not negative ones. Stockholders should be up in arms about this and making sure it can't happen again in any major company.

Absolutely insane and

Absolutely insane and unforgivable! This is theater of the absurd gone
into the stratosphere. No one is worth that much in salary and bonuses. And for what? Crashing the company and stockholder's shares?

I have a modest proposal: let's nationalize these banks and take back citizen control. Throw the thieving, narcissistic bastards out, and create a just society for all.

Well said!! Obviously, this

Well said!! Obviously, this BIG BANK THING isn't working at the state or national level...make the banks accountable again rather big mega-giants that no one knows how to control!!

This is absolutely

This is absolutely unforgiveable. These people hold a mortgage on one of my houses and the day after the payment is due they call with a "courtesey reminder" like they could not live without that $364.01. So they are taking the payment of thousand like myself and giving it to incompetents like these two? What a crock of sh*t!

And please don't tell me they have to pay those kinds of salaries to attract capable people. I would do it for half the price and I could not have done a much worse job. It is obvious from their performance that the job requires complete ignorance of how do do the job. Hey, I am qualified.

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