Vikram Pandit

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Vikram S. Pandit

Vikram Pandit at the World Economic Forum in Davos, Switzerland in 2011.
Born Vikram Shankar Pandit
14 January 1957 (1957-01-14) (age 55)[1]
Nagpur, Maharashtra, India[2]
Residence New York, United States
Nationality United States (naturalized)
Alma mater Columbia University (BS, MS, MBA, Ph.D.)
Occupation Banker
Years active 1983–Present
Employer Citigroup
Title CEO
Board member of Citigroup
Columbia University
Columbia Business School
Indian School of Business
Religion Hinduism
Spouse Swati [3]
Children Two children - Rahul and Maya [3]

Vikram Shankar Pandit (Marathi: विक्रम शंकर पंडित; born 14 January 1957) is an Indian-born American business executive. He is widely known as the CEO of Citigroup, a position he has held since Dec 2007.[4]

He holds a B.S & M.S degree in Electrical Engineering from Columbia University, followed by an M.B.A & Ph.D. in Finance from Columbia Business School. Pandit, a naturalized citizen of United States, lives in New York City with his wife and two children.

Contents

[edit] Early life and education

Vikram Pandit was born in Nagpur, India to an affluent Marathi family. His father, Shankar B Pandit was an executive director at Sarabhai Chemicals in Baroda.[5][6] [7]

He completed his schooling at the Dadar Parsee Youths Assembly High School in Dadar, Mumbai and when he was 16 years old, moved to the United States[5] to pursue his higher education at Gannon University. [1]

A spectacular student, Pandit went to Columbia for his undergraduate program and in 1976, earned his B.S., Electrical Engineering degree in only three years. He completed his M.S. in Electrical Engineering, also from Columbia University in 1977. He then turned to business studies & finance and earned an M.B.A in 1980 followed by a Ph.D. in Finance from Columbia Business School in 1986, after publishing a thesis involving a crushingly complex financial puzzle, entitled "Asset prices in a heterogeneous consumer economy".[5][8][9][10]

[edit] Professional Career

[edit] Early career and Morgan Stanley: 1983 - 2005

During his early professional years, he taught economics at Columbia, then had a stint as a professor at the Indiana University in Bloomington.[5][11]

He joined Morgan Stanley as an associate in 1983, one of the first Indians to join the company.[5][1][11] In 1990, Vikram Pandit was chosen as the managing director and head of the US Equity Syndicate unit of Morgan Stanley and by 1994, he had risen to become managing director (MD) and head of its worldwide Institutional securities division.

He was instrumental in building Morgan Stanley's electronic trading and prime brokerage division and in 2000, ultimately rose to the post of President and Chief Operating Officer (COO) of its worldwide operations of the Institutional securities and Investment banking businesses.[3]

In 2005, after more than two decades with Morgan Stanley, Vikram Pandit finally decided to leave the firm along with John Havens after being passed over by Philip J. Purcell.[12][13]

[edit] Post Morgan Stanley and joining Citigroup: 2006 - till date

In 2006 after leaving Morgan Stanley, Pandit and John Havens with Guru Ramakrishnan, former global head of trading, technology and new products in the equities group at Morgan Stanley started a hedge fund, Old Lane LLC.[14] Citi bought the company in 2007 for $800 million bringing both Pandit and Havens into Citi leadership.[15] Citi named Pandit Chairman and CEO of Citi Alternative Investments (CAI) unit and he later led Citi's Institutional Clients Group.

On Dec. 11, 2007, Pandit was named the new CEO of Citigroup, replacing interim-CEO Sir Winfried Bischoff. Pandit was strongly supported by then interim chairman of Citigroup, Robert Rubin,[16] the effective successor to Chuck Prince. Prince had resigned as Chairman and CEO of Citigroup in November 2007, due to unexpectedly poor 3rd-quarter performance, mainly due to CDO- and MBS-related losses.

On February 11, 2009, Pandit testified to Congress that he had declared to his board of directors, "my salary should be $1 per year with no bonus until we return to profitability."[17][18][19] He also struck an apologetic tone for letting the bank consider completing the purchase of a private jet plane after receiving some $45 billion in Troubled Asset Relief Program (TARP) funds.[20] His total 2009 compensation was $128,751, with a base salary of $125,001 and other compensation of $3,750.[21]

In Jan 2011, after working for two years for just $1 a year, his annual base was raised to $1.75 million for the progress Citi made under Vikram’s leadership. [22] After posting five consecutive quarterly profits, Citigroup in May 2011, announced $23.2m retention award to Pandit making him one of the highest paid CEOs.[23][24]

His co-chairing of Davos 2012 was heavily criticised,[25] with Mike Mayo, an analyst with Credit Agricole Securities in New York remarking: "What kind of signal does that send that the bank that was the worst-performing in our country over the last decade and whose stock price is still down significantly since he took over is the ambassador for our financial industry?"[26] At Davos 2012, Pandit said that Citigroup was going "back to the basics of banking" in response to public anger about the financial crisis, and argued that, "The single biggest issue facing us is the question of jobs," giving an estimate of 400m jobs in the next 10 years.[27]

[edit] Compensation

While CEO of Citigroup in 2007, Vikram S. Pandit earned an annualized compensation of $3,164,320, which included a base salary of $250,000, stocks granted of $2,914,320, and options granted of $0.[28] In 2008, he earned a total compensation of $38,237,437, which included a base salary of $958,333, stocks granted of $28,830,000, and options granted of $8,432,911. However, after adjusting for Citigroup’s sunken share price, the package was worth just a few million dollars.[29] Pandit did receive $165 million for his low performing hedge fund which was purchased by Citi in 2007.[30] The fund has since been shuttered.

[edit] Board Memberships and Honors

Vikram Pandit is a part of the board of Columbia University, Columbia Business School, the Indian School of Business and The Trinity School. He also serves as Director of the Institute of International Finance. [31] He was on the board of NASDAQ OMX, the New York City Investment Fund from the year 2000 till 2003.

In 2008, Vikram Pandit was given the coveted Padma Bhushan by the Government of India.[1]

[edit] Personal life

Pandit lives in an apartment on the Upper West Side of New York City. He is married and has two children.[32]

[edit] References

  1. ^ a b c d "Vikram Pandit: A Profile Published On: 21 Mar 2011". http://www.minglebox.com/article/executive-education/vikram-pandit-a-profile. Retrieved 14 Jan 2012. 
  2. ^ Profile- Vikram Pandit - Bloomberg Businessweek
  3. ^ a b c "Published in PortfolioProfile: Vikram Pandit". http://www.pranaygupte.com/article.php?index=607. Retrieved 14 Jan 2012. 
  4. ^ "Shake up at Citigroup". International Herald Tribune. http://www.iht.com/articles/2007/10/12/business/citi.php. Retrieved 2007-12-11. 
  5. ^ a b c d e Hagan, Joe (2009-03-01). "How Citigroup CEO Vikram Pandit Became the Most Powerless Powerful Man on Wall Street – New York Magazine". Nymag.com. http://nymag.com/news/businessfinance/55035/. Retrieved 2010-10-05. 
  6. ^ "Vikram Pandit". Rediff.com. 13 Dec 2007. http://www.rediff.com/money/2007/dec/13pandit.htm. Retrieved 14 Jan 2012. 
  7. ^ "Vikram Pandit". Rediff.com. 18 Dec 2007. http://inwww.rediff.com/money/2007/dec/17slide1.htm. Retrieved 14 Jan 2012. 
  8. ^ "Office of the Secretary of The University". Columbia University in The City of New York. http://www.columbia.edu/cu/secretary/bios/pandit/index.html. Retrieved 2007-12-11. 
  9. ^ Asset prices in a heterogeneous consumer economy
  10. ^ Google Books | Asset prices in a heterogeneous consumer economy
  11. ^ a b "Bio of Vikram Pandit". http://lifestyle.iloveindia.com/lounge/vikram-pundit-1109.html. Retrieved 14 Jan 2012. 
  12. ^ "Exile From Wall Street". The New York Times. 2005-08-21. http://www.nytimes.com/2005/08/21/business/yourmoney/21morgan.html?pagewanted=print. 
  13. ^ "How Purcell Lost His Way". Businessweek.com. 2005-07-11. http://www.businessweek.com/magazine/content/05_28/b3942091_mz020.htm. Retrieved 2011-01-21. 
  14. ^ Bloomberg News | Pandit, Havens to Start Hedge Fund With $2 Billion by Katherine Burton - March 16, 2006
  15. ^ Dash, Eric (2011-01-19). "Citigroup Names John Havens as President and C.O.O. - NYTimes.com". Dealbook.nytimes.com. http://dealbook.nytimes.com/2011/01/19/citigroup-names-john-havens-as-president-coo/. Retrieved 2011-01-21. 
  16. ^ "Vikram Pandit is Citigroup CEO". Rediff.com. 2004-12-31. http://www.rediff.com/money/2007/dec/12citi.htm. Retrieved 2010-10-05. 
  17. ^ Bloomberg News | Citigroup’s Vikram Pandit to Take $1 Salary, No Bonus (Update4) by Elizabeth Hester - February 11, 2009
  18. ^ Tharp, Paul (2009-03-12). "CITI'S PANDIT VOWS TO TAKE $1 SALARY AND NO BONUS". New York Post. http://www.nypost.com/seven/02122009/business/citis_pandit_vows_to_take_1_salary_and_n_154752.htm. Retrieved 2009-03-20. 
  19. ^ Farrell, Greg (2009-03-17). "Citigroup chief awarded $10.82 million". Financial Times (New York). http://www.ft.com/cms/s/0/ecd9b448-1281-11de-b816-0000779fd2ac.html. Retrieved 2009-03-20 
  20. ^ CNNMoney.com's bailout tracker
  21. ^ 2009 CEO Compensation for Vikram S. Pandit, Equilar
  22. ^ Dash, Eric (Jan 22 2011). "Vikram Pandit Will FINALLY Be Making More Than $1 Per Year". businessinsider.com. http://www.businessinsider.com/vikram-pandit-one-dollar-compensation-2011-1. Retrieved Jan 14 2012. 
  23. ^ As Citi Revives, Pandit Wins Big Pay Package
  24. ^ Citigroup gives $23.2m retention award to CEO Vikram Pandit. Times of India. May 19, 2011
  25. ^ Jonathan Weil (26 January 2012). "Pandit Does Davos, 0.1% Gloat, Madness Reigns". Bloomberg. http://www.bloomberg.com/news/2012-01-26/pandit-does-davos-0-1-gloat-madness-reigns-commentary-by-jonathan-weil.html. Retrieved 26 January 2012. "It's stunning when you think about it: How does Pandit, who owes much of his fortune to the American public's largess, wind up being showcased as a paragon of leadership and free enterprise, little more than a year after the U.S. Treasury finally sold the last of its Citigroup common stock?" 
  26. ^ Christine Harper; Elisa Martinuzzi (24 January 2012). "Pandit Pariah No More as U.S. Bankers in Ascendance at Davos". Bloomberg. http://www.bloomberg.com/news/2012-01-23/pandit-pariah-no-more-as-u-s-bankers-gain-ascendancy-at-davos.html. Retrieved 24 January 2012. "Some of Pandit's critics at home question whether he should take a bigger role at Davos given his bank's underperformance. Shares in the lender, which received a $45 billion government bailout during the financial crisis, have plunged 94 percent in the past decade, the most of the 24 companies in the KBW Bank Index, and 91 percent since Pandit became CEO in 2007." 
  27. ^ Keith Campbell; Christine Harper (25 January 2012). "Citigroup Targets Banking Basics Amid 'Anger,' Pandit Says". Bloomberg. http://www.bloomberg.com/news/2012-01-25/citigroup-targets-banking-basics-amid-anger-pandit-says-1-.html. Retrieved 26 January 2012. 
  28. ^ 2007 CEO Compensation for Vikram S. Pandit , Equilar
  29. ^ Eric Dash For Pandit, $1 This Year, a Big Bump in 2011. NYTimes. September 24, 2010
  30. ^ John Cassidy What Good Is Wall Street?, The New Yorker. November 29, 2010
  31. ^ The Institute of International Finance, Inc. | 2010 Press Releases. Iif.com. Retrieved on 2011-08-07.
  32. ^ "Vikram S. Pandit". Forbes. http://people.forbes.com/profile/vikram-s-pandit/19716. 

[edit] External links

Business positions
Preceded by
Win Bischoff		 Citigroup CEO
2007–present		 Succeeded by
Incumbent
Brands/companies
Key people
Notable
former executives
Corporate Directors
Local entities

Annual revenue: increase US$86.601 billion (2010) · Employees: 260,000 (2010) · Stock Symbol: NYSE: C · Website: citigroup.com · Headquarters: 399 Park Avenue, New York City, New York 10043, United States
Retrieved from "http://en.wikipedia.org/w/index.php?title=Vikram_Pandit&oldid=474527511"
Personal tools
Namespaces
Variants
Actions
Navigation
Interaction
Toolbox
Print/export
Languages