Citigroup CEO Vikram Pandit , agreed to accept $1 in salary for 2010 turning down a potentially lucrative compensation package for the second consecutive year.  At a Congressional hearing in February 2009, Mr. Pandit pledged that he would accept only that token amount until he returned the bank to sustained profitability.

Citi Chairman Richard Parsons said the board was “very pleased” with the progress that Mr. Pandit was making and planned to restore his compensation to a level comparable to the heads of other banking chiefs in 2011 - perhaps to JPMorgan CEO Jamie Dimon's $17.6mn, or Wells Fargo CEO John Stumpf's $18.7mn, which was tops among best-paid bankers. 

Citigroup is among the first major banks to reveal its pay plans for 2010, and its decisions will be closely watched by its Wall Street rivals.  Banks frequently look closely at each other’s compensation decision since they aggressively compete to attract and retain talent. 

    Behind the $1 Salary.   Mr. Pandit’s pay had been a political flashpoint, especially after the bank’s stock price collapsed and Citi turned to the government for multiple bailouts.  In 2008, Citi's board awarded Mr. Pandit compensation valued at the time at $38.2mn.  In addition to Mr. Pandit's windfall from selling his investment fund, Old Lane Partners, to Citigroup for $800mn April 2007, which since has shuttered.  In 2009, he pledged to accept a $1 salary and forgo any bonus in move that won praise from compensation critics and shielded him from the scrutiny faced by other Wall Street chiefs.

    Among Citi's Top 25 Highest Paid Execs.   John Havens, head of Citigroup’s investment bank, is expected to be the bank’s highest paid executive for the second year in a row, with a compensation package worth $9.5mn.  Manuel Medina-Mora, head of Citigroup’s consumer banking operations for the Americas, will get nearly $8mn.  Alberto Verme, co-head of Citigroup’s operations in Europe, Africa and the Middle East, will receive about $6.5mn, while his co-head, William Mills, will be paid over $5mn.  Edward Kelly III, vice chairman in Citigroup’s investment bank, will receive $6.5mn.  CFO John Gerspach will collect about $4.7mn.   [NYTimes, 9/25]