Citigroup's Board has rewarded chief executive Vikram Pandit with a huge pay day for steering the company back into the black over the last two years. Pandit who had been one of the street's lowest paid leaders, received a $23.2 million retention package that could catapult him to the top of the list.  Pandit  earned a token annual salary of $1 has been led the bank from a federal bailout to five consecutive quarterly profits.  But on Wednesday, Citi’s board awarded him as much as $16.5 million in stock and options as well as a cash payment valued at more than $6.65 million as part of a special profit-sharing program for top executives. In January, Citi’s board raised Mr. Pandit’s $1 salary to $1.75 million a year. The additional $5.5 million a year in retention payouts will set the stage for him to be paid as much, if not more, than his peers.

The payouts will be spread over the next four years and are subject to Mr. Pandit’s meeting certain performance goals. They will be in addition to his regular salary and annual bonuses.

The announcement comes as Citigroup recently posted its fifth consecutive quarterly profit and completed a reverse stock split that, with the stroke of a pen, ratcheted its share price to more than $40 from $4.

The retention package signals the end to speculation over whether Pandit would continue at the Citigroup and also could signify the unofficial end of the post-bailout pay era. [NYTimes 5/19/11]