Citigroup Inc boosted CEO Vikram Pandit’s base salary to US$1.75 million from US$1 million after the bank’s first profit for a year under his watch as Wall Street firms announced pay packages for top managers.
James Gorman, Morgan Stanley’s CEO since January last year, was awarded deferred stock and options valued at about US$7.4 million for his performance last year, when the firm’s shares trailed rivals. JPMorgan Chase & Co awarded CEO Jamie Dimon’s top 15 executives more than US$73 million in restricted shares, plus stock options, for their performance last year.
Pandit’s raise is effective immediately, Citigroup said on Friday. Pandit, 54, has led the New York-based lender since December 2007 and oversaw its US$45 billion bailout by taxpayers the next year. In February 2009, he told lawmakers his salary would be capped at US$1 million until the firm returned to profitability, and this week it reported a US$10.6 billion profit for last year.
Shares of Citigroup climbed 43 percent last year and the US Treasury Department sold the last of its 27 percent stake last month, making a profit for taxpayers.
The company announced last year’s bonuses of almost US$50 million for 15 other senior executives. Six of them, including newly promoted CEO John Havens, also shared “stock salary” last year worth more than US$37 million on an annualized basis, according to a Sept. 24 filing. Pandit declined a bonus for the year.
At Morgan Stanley, Gorman’s total compensation for last year was less than what he received for 2009, when he got a US$15.1 million package, according to a person briefed on the matter who declined to be identified because those figures aren’t yet public. Gorman, 52, was co-president of the firm in 2009 and became CEO last year. The firm’s stock slid 8.1 percent last year.
Morgan Stanley set aside 51 percent of overall revenue for pay, meeting Gorman’s promise to reduce the ratio after it surged to 62 percent in 2009. The New York-based firm’s shares have risen 10 percent this year as the bank posted record brokerage revenue.
Gorman will get 129,809 restricted shares, valued at US$3.9 million at Friday’s closing price of US$30.01, plus stock options worth US$3.5 million, according to a US Securities and Exchange Commission filing on Friday.
Morgan Stanley chairman John Mack, 66, received 66,912 restricted shares, valued at US$2 million. Mack declined a bonus for 2007, 2008 and 2009, his final three years as CEO. Morgan Stanley more than doubled Mack’s salary to US$2 million in May, from the US$800,000 annual salary he had received since he rejoined the firm in 2005.
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