This CEO gets $1 salary

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  1. Markus
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    Markus SENIOR MEMBER

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    Citi's Pandit will work for $1 in 2010 too

    Washington, Sep 25 (IANS) Citigroup's India-born CEO Vikram Pandit has decided to work for just $1 for the second year in a row.

    Pandit, who has restored the ailing banking giant to profitability and brought it mostly out from under strict government scrutiny after a $45 billion rescue during the financial crisis, told the Citi board he wouldn't accept any compensation above $1 for this year, the group said Friday.

    Citi also announced it would be paying its top 25 executives by way of 'stock salary,' or non-cash compensation.

    Pandit's salary will bounce back next year, however, regardless of what he wants. In a statement, Citigroup Chairman Richard Parsons said Pandit had restored the company to profitability and is well along in his efforts to shed assets and refocus the firm on a narrower set of priorities.

    'Vikram's decision is admirable but, beginning in 2011, the board intends to compensate Vikram commensurate with the job of CEO of Citi.'

    Under the government's Troubled Asset Relief programme, Citi received one of the biggest lines of assistance in 2008 and 2009. It is now close to completely ending that association with the Treasury planning to sell its last remaining holdings of Citi by the end of the year.

    Citi says granting 'stock salary' now allows it to decide on bonuses for 2010 at the end of the year. If Citi ends up paying for all 12 months of the year, that would add up to 'stock salaries' for those executives ranging from $9 million to $4 million.

    US business magazine Forbes said this is consistent with projections earlier this year by Wall Street compensation consultant Alan Johnson, who said the good news is pay is coming back to Wall Street after many senior executives did without last year.

    Citi's Pandit will work for $1 in 2010 too - Yahoo! India News
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  2. somebozo
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    somebozo ELITE MEMBER

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    He will make a lot more than that in stocks option..a smart movie I say!
  3. Salik
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    Salik FULL MEMBER

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    This pandit has done a great job for restoring the ailing banking giant to profitability still he will accept $1 for his salary one dollar is a unique figure any ways I thought pandits only work in the temples confined to religious activities are they educated advanced studies or what is the case??
  4. Markus
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    Markus SENIOR MEMBER

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    His surname is "Pandit", a not so uncommon one in Hindus. he is a Maharashtrian and has nothing to do with Kashmir.

    Vikram Pandit - Wikipedia, the free encyclopedia
  5. Salik
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    Salik FULL MEMBER

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    ^ Ok I see thanks for the clarification Pandit is a vast term in Indian society


    By the way I wasnt intended to direct to Kashmir...
  6. Donatello
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    Donatello PDF THINK TANK: ANALYST

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    They said the same about Steve Jobs.

    But the question is, do they live off it? Because stocks and investments alone are worth to feed you for life!
  7. Tuahaa
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    Tuahaa FULL MEMBER

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    Rich people are interesting, you know
  8. true_indian
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    true_indian BANNED

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    Stocks are worth only if the company is doing well. What is he going to do with failing stocks. This is why $1 is significant here. It shows that he is confident of getting the company back on track. I admire his courage.
  9. Markus
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    Markus SENIOR MEMBER

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    Nice point.

    Its very much possible that if Citi does not do good, then his earnings from the stock sale could be less than the money that he could have earned as the CEO had he accepted the normal compensation route that most others opt for.

    But this move surely displays his confidence.

    Also, he is sending a very strong message to the investors of Citi that he will bring Citi back on track and this speaks volumes abt his corporate leadership skills.