Citigroup CEO deserves bonus, reaffirms the Board

Citigroup has reaffirmed that Chief Executive Officer Vikram Pandit truly deserved a bonus in 2009 for his outstanding performance in raising capital for the loss-making bank in addition to selling assets and repaying USD20 billion of bailout package. However, Pandit declined the reward as he pledged in February 2009 to take only USD1 per annum until the bank is able to take its profit quotient into the positive territory. According to the board’s compensation committee led by Alain Belda, “Mr Pandit’s performance in 2009 merited an incentive award, but the committee respected Mr. Pandit’s commitment,”. Pandit got USD125,001 for the year, that includes the pay cheques he collected in the weeks before his pledge, according to the compensation committee report. It can be reported that the Citigroup lost USD1.6 billion in 2009 in contrast to a staggering USD27.7 billion loss in the preceding year and it is good to notice that the CEO of the multi-billion dollar conglomerate emerged as an example of inspirational leadership.