Global financial services company Citigroup will raise the one dollar token salary of its Chief Executive Vikram Pandit to compensation commensurate with the job, next year.
In a filing with the Securities and Exchange Commission on Friday, Citigroup announced the stock compensation the company's top 25 executives will receive this year.
Citigroup Chairman Richard Parsons said that beginning next year, Pandit's compensation will be raised from one dollar in view of his efforts to bring the group back to profitability.
The India-born CEO had pledged in February 2009 that he will accept only one dollar in salary and bonus until Citi returns to profitability.
He again declined compensation this year and informed the Board that he will not accept "additional compensation" above his one dollar salary for 2010.
"The Board is very pleased with the progress that the management team is making in restoring Citi to profitability.
Although, we respect Vikram's decision again to decline salary or an incentive award for 2010, we believe that his performance would merit a different outcome," Parsons said.
"He has worked tirelessly to put Citi back on the track, spearheading a restructuring that has returned the company to profitability. Vikram's decision is admirable but, beginning 2011, the Board intends to compensate Vikram commensurate with the job of CEO of Citi," he added.
Citigroup had given Pandit a compensation package of about USD 38 million in 2008.
Citigroup received an over USD 45 billion bailout package from the US government. It has been struggling to return to profitability.
The New York-based bank reported a net profit of USD 7.1 billion for the first half of 2010.
It had reported USD 1.6 billion net loss in 2009 and USD 18.72 billion loss in 2008.
Citigroup said it has decided to grant 'stock salary' or shares that can be quickly sold to the company's top 25 executives, consisting of Proxy Officers and the top 20 highest compensated employees.
Among those granted the "stock salary" are Chief Financial Officer John Gerspach, Vice Chairman Edward Kelly, CEO of the bank's Institutional Clients Group John Havens, CEO of Consumer Banking for the Americas Manuel Medina-Mora and CEO for Europe, Middle East and Africa Alberto Verme.
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