Citi’s Pandit, aide to get $15 mn in severance pay each
10 Nov 2012
Citigroup said it will pay over $15 million to Vikram S Pandit, its former chief executive who resigned from company last month, as well as to former chief operating officer John Havens, who resigned along with Pandit.
The bank said on Friday the payments reflect the progress the bank made in 2012 and work they did in some earlier years.
The 'resignations' of Pandit and his top aide were actually forced in a boardroom coup led by chairman Michael O'Neill who wanted him out, as reported earlier (See:Vikram Pandit's ouster from Citi a 'boardroom coup').
Michael Corbat, till then head of Europe, Middle East, and Africa for Citigroup, was named the new chief executive.
The payments are the final chapter in the reign of Pandit, who was named chief executive just as the financial crisis started and shepherded the bank through three government rescues back to profitability.
O'Neill lost confidence in Pandit after missteps that included the bank's failure to win regulatory approval to return capital to shareholders this year.