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===Compensation===
===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.<ref name=VSP-22/> 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 [[stock option|options]] granted of $8,432,911. However, after adjusting for Citigroup’s sunken share price, the package was worth just a few million dollars.<ref name=VSP-21/> Pandit did receive $165 million for his hedge fund which was purchased by Citi in 2007.<ref name=VSP-20/> The fund has since been shuttered. In 2012, Citigroup shareholders voted in favor of a non-binding resolution to reject a $15 million pay package for Pandit. His net worth is estimated to be $60 million.
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.<ref name=VSP-22/> 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 [[stock option|options]] granted of $8,432,911. However, after adjusting for Citigroup’s sunken share price, the package was worth just a few million dollars.<ref name=VSP-21/> Pandit did receive $165 million for his hedge fund which was purchased by Citi in 2007.<ref name=VSP-20/> The fund has since been shuttered. In 2012, Citigroup shareholders voted in favor of a non-binding resolution to reject a $15 million pay package for Pandit. In November 2012, Pandit was issued about $6.7 million in 2012 compensation.<ref>{{cite web|url=http://www.bloomberg.com/news/2012-11-09/citigroup-ex-ceo-pandit-gets-6-7-million-compensation-for-2012.html|title=Citigroup Will Pay Former Chief Pandit $6.7 Million|publisher=Bloomberg|accessdate=30 January 2013}}</ref> His net worth is estimated to be $60 million.


== Board Memberships and honors ==
== Board Memberships and honors ==

Revision as of 14:32, 30 January 2013

Vikram Pandit
Pandit at the World Economic Forum in 2011.
Born
Vikram Shankar Pandit

(1957-01-14) 14 January 1957 (age 67)[1]
Nagpur, Maharashtra, India[2]
NationalityAmerican
Alma materColumbia University, BS, MS, MBA,[3] Columbia University, PhD
OccupationBanker
Years active1983–present
TitleEx-CEO of Citigroup
Board member ofColumbia University
Columbia Business School
Indian School of Business
SpouseSwati[4]
ChildrenRahul and Maya[4]

Vikram Shankar Pandit (born 14 January 1957; Marathi : विक्रम पंडित ) is an Indian-born American banker.[5] He is the former chief executive of Citigroup, a position he held from December 2007[6] until he was forced to resign on 16 October 2012.[7][8]

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

Early life and education

Vikram Pandit was born in Nagpur, Maharashtra, India to an affluent marathi family. His father, Shankar B. Pandit, was an executive director at Sarabhai Chemicals in Baroda.[9][10][11]

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[9] to attend Columbia University.[12]

As a student, Pandit went to Columbia University[13] 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 in 1977. He then turned to business studies & finance and earned an M.B.A in 1980 followed by a PhD in finance from Columbia Business School in 1986, after publishing a thesis involving a complex financial puzzle, titled "Asset prices in a heterogeneous consumer economy".[9][14][15][16]

Professional career

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 Brock University in St. Catharines, Canada.[citation needed]

He joined Morgan Stanley as an associate in 1983, one of the first Indians to join the company.[9][1][17] 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.[4]

In 2005, after more than two decades with Morgan Stanley, Vikram Pandit decided to leave the firm along with John Havens after being passed over by Philip J. Purcell.[18][19]

Post Morgan Stanley and joining Citigroup (2006 – 2012)

In March 2006, Pandit and John Havens, along with Guru Ramakrishnan (former global head of trading, technology and new products in the equities group at Morgan Stanley), started the hedge fund Old Lane LLC.[20] Citi bought the company in 2007 for $800 million bringing both Pandit and Havens into Citi leadership.[21] Citi named Pandit chairman and CEO of Citi Alternative Investments (CAI) unit and he later led Citi's Institutional Clients Group.

On 11 December 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,[22] the effective successor to Chuck Prince. Prince had resigned as chairman and CEO of Citigroup in November 2007, due to unexpectedly poor third-quarter performance, mainly due to CDO- and MBS-related losses.

On 11 February 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."[23][24][25] 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.[26] His total 2009 compensation was $128,751, with a base salary of $125,001 and other compensation of $3,750.[27]

In January 2011, after working for two years for a salary of $1 a year, his annual base was raised to $1.75 million for the progress Citi made under Vikram’s leadership.[28][29][27] 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.[30][31] In April 2012, shareholder voted against increasing his pay to $15 million. About 55% of the votes cast were against the compensation package.[32]

His co-chairing of Davos 2012 was criticised,[33] 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?"[34] 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 400 million jobs in the next 10 years.[35]

Resignation

On 16 October 2012, Citigroup CEO Vikram Pandit unexpectedly resigned as CEO.[8] Michael Corbat, previously Citigroup's CEO of Europe, Middle East, and Africa, was named as his replacement.[36] While Pandit and the company officially maintain that he resigned, Bloomberg News cited anonymous board sources indicating that Pandit was forced out by the board after eroding investor confidence and damaging company relations with regulators over an extended period.[37] The New York Times later identified Chairman Michael E. O'Neill as the driving force behind a months-long secret effort to oust Pandit, which culminated in a surprise ultimatum to Pandit stating that he must resign immediately, resign at the end of the year, or be fired.[38] His resignation followed multiple payouts to investors during ongoing fraud allegations. [39][40][41]

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.[27] 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 hedge fund which was purchased by Citi in 2007.[42] The fund has since been shuttered. In 2012, Citigroup shareholders voted in favor of a non-binding resolution to reject a $15 million pay package for Pandit. In November 2012, Pandit was issued about $6.7 million in 2012 compensation.[43] His net worth is estimated to be $60 million.

Board Memberships and honors

Vikram Pandit is a part of the board of Columbia University, Columbia Business School, the Indian School of Business, and Trinity School. He also serves as director of the Institute of International Finance.[44] He was on the board of NASDAQ OMX, the New York City Investment Fund, from 2000 to 2003.

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

Personal life

Pandit lives in an apartment on the Upper West Side of New York City. He and his wife, Swati, have two children, Rahul and Maya.[45]

References

  1. ^ a b c "Vikram Pandit: A Profile". 21 March 2011. Retrieved 14 January 2012.
  2. ^ "Profile- Vikram Pandit". Bloomberg Businessweek. 18 December 2007. Retrieved 14 January 2012.
  3. ^ http://investing.businessweek.com/research/stocks/people/person.asp?personId=525386&ticker=C
  4. ^ a b c "Published in PortfolioProfile: Vikram Pandit". Retrieved 14 January 2012.
  5. ^ "Vikram has to put in lot of efforts, says dad – Times Of India". Articles.timesofindia.indiatimes.com. 12 December 2007. Retrieved 13 July 2012.
  6. ^ "Shake up at Citigroup". International Herald Tribune. Retrieved 11 December 2007.
  7. ^ http://finance.yahoo.com/news/vikram-pandit-step-down-citigroup-122131671.html
  8. ^ a b JESSICA SILVER-GREENBERG and SUSANNE CRAIG; Michael J. de la Merced contributed reporting (17 October 2012). "Citigroup's Chief Resigns His Post In Surprise Step". Section: A. New York Times. {{cite news}}: |access-date= requires |url= (help)CS1 maint: multiple names: authors list (link)
  9. ^ a b c d Hagan, Joe (1 March 2010). "How Citigroup CEO Vikram Pandit Became the Most Powerless Powerful Man on Wall Street – New York Magazine". Nymag.com. Retrieved 5 October 2010.
  10. ^ "Vikram Pandit". Rediff.com. 13 December 2007. Retrieved 14 January 2012. {{cite web}}: Text "13 December 2007" ignored (help); Text "Rediff News" ignored (help)
  11. ^ "Vikram Pandit". Rediff.com. 18 December 2007. Retrieved 14 January 2012. {{cite news}}: Text "18 December 2007" ignored (help); Text "Rediff News" ignored (help)
  12. ^ http://investing.businessweek.com/research/stocks/people/person.asp?personId=525386&ticker=C
  13. ^ http://nymag.com/news/businessfinance/55035/index3.html
  14. ^ "Office of the Secretary of The University". Columbia University in The City of New York. Retrieved 11 December 2007.
  15. ^ "Asset prices in a heterogeneous consumer economy". Google. Retrieved 14 January 2012.
  16. ^ "Google Books, Asset prices in a heterogeneous consumer economy". {{cite web}}: Missing or empty |url= (help); Unknown parameter |http://books.google.co.in/books/about/Asset_prices_in_a_heterogeneous_consumer.html?id= ignored (help)
  17. ^ "Bio of Vikram Pandit". Retrieved 14 January 2012.
  18. ^ "Exile From Wall Street". The New York Times. 21 August 2005.
  19. ^ "How Purcell Lost His Way". Bloomberg BusinessWeek. 11 July 2005. Retrieved 21 January 2011.
  20. ^ Bloomberg News "Pandit, Havens to Start Hedge Fund With $2 Billion". Bloomberg. Retrieved 14 January 2012. {{cite web}}: Check |url= value (help) by Katherine Burton
  21. ^ Dash, Eric (19 January 2011). "Citigroup Names John Havens as President and C.O.O." Dealbook.nytimes.com. Retrieved 21 January 2011.
  22. ^ "Vikram Pandit is Citigroup CEO". Rediff.com. 31 December 2007. Retrieved 5 October 2010.
  23. ^ "Citigroup's Vikram Pandit to Take $1 Salary, No Bonus (Update4) by Elizabeth Hester". Bloomberg. 11 February 2009.
  24. ^ Tharp, Paul (12 March 2012). "CITI'S PANDIT VOWS TO TAKE $1 SALARY AND NO BONUS". New York Post. Retrieved 20 March 2012.
  25. ^ Farrell, Greg (17 March 2009). "Citigroup chief awarded $10.82 million". Financial Times. New York. Retrieved 20 March 2012.
  26. ^ "CNNMoney.com's bailout tracker". CNN.
  27. ^ a b c 2007 "CEO Compensation for Vikram S. Pandit". Equilar. {{cite news}}: Check |url= value (help)
  28. ^ Dash, Eric (22 January 2011). "Vikram Pandit Will FINALLY Be Making More Than $1 Per Year". businessinsider.com. Retrieved 14 January 2012.
  29. ^ a b Eric Dash "For Pandit, $1 This Year, a Big Bump in 2011". NYTimes. 24 September 2010.
  30. ^ "As Citi Revives, Pandit Wins Big Pay Package". NY Times.
  31. ^ "Citigroup gives $23.2m retention award to CEO Vikram Pandit]. Times of India". 19 May 2011.
  32. ^ Silver-Greenberg, Jessice (18 April 2012). "Citigroup's Chief Rebuffed on Pay by Shareholders". The New York Times. Retrieved 18 April 2012. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  33. ^ Jonathan Weil (26 January 2012). "Pandit Does Davos, 0.1% Gloat, Madness Reigns". Bloomberg. 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?
  34. ^ Christine Harper (24 January 2012). "Pandit Pariah No More as U.S. Bankers in Ascendance at Davos". Bloomberg. 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. {{cite news}}: Unknown parameter |coauthor= ignored (|author= suggested) (help)
  35. ^ Keith Campbell (25 January 2012). "Citigroup Targets Banking Basics Amid 'Anger,' Pandit Says". Bloomberg. Retrieved 26 January 2012. {{cite news}}: Unknown parameter |coauthor= ignored (|author= suggested) (help)
  36. ^ de La Merced, Michael J. "Pandit Steps Down as Citi's Chief". NYTimes.com.
  37. ^ "Citigroup Board Said to Oust Pandit After Multiple Setbacks".
  38. ^ Jessica Silver-Greenberg and Susanne Craig (25 October 2012). "Citi Chairman Is Said to Have Planned Chief's Exit Over Months". New York Times. Retrieved 25 October 2012.
  39. ^ Independent (8 November 2012). "Why Is The S.E.C. Concealing Massive Citigroup Fraud?". Daily Bail. Retrieved 8 November 2012.
  40. ^ Independent (5 September 2012). "Did Citigroup Defraud Billions from U.S. Ally Abu Dhabi?". Alter Net. Retrieved 5 September 2012.
  41. ^ NBCNEWS (6 October 2005). "Citigroup to pay $2 billion to Enron investors". NBCNEWS. Retrieved 6 October 2005.
  42. ^ John Cassidy "What Good Is Wall Street?". The New Yorker. 29 November 2010. Retrieved 14 January 2012.
  43. ^ "Citigroup Will Pay Former Chief Pandit $6.7 Million". Bloomberg. Retrieved 30 January 2013.
  44. ^ "The Institute of International Finance, Inc., 2010 Press Releases". Iif.com. {{cite web}}: |access-date= requires |url= (help); Missing or empty |url= (help); Text "http://www.iif.com/press/press+releases+2010/press+165.php" ignored (help)
  45. ^ "Vikram S. Pandit". Forbes.
Business positions
Preceded by Citigroup CEO
2007–2012 		Succeeded by

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