Citigroup Inc. (C) will pay five of its top executives almost $33 million in stock compensation this year and plans to increase its CEO's salary above his $1 a year figure in 2011, marking the financial institution's effort to reward executives for turning a profit so far this year after two years of losses.

The company, which is partially owned by the federal government after receiving billions in bailout funding, will pay John Havens, who runs the company's institutional clients group, $9 million in stock this year, while Manuel Medina-Mora, CEO, consumer banking for the Americas and chairman of the Global Consumer Council, will be paid about $7.45 billion in Citigroup shares, the company said in a document filed with the Securities & Exchange Commission today. CFO John C. Gerspach, Vice Chairman Edward J. Kelly III and Alberto J. Verme, Citigroup's CEO of Europe, Middle East and Africa, will each be paid more than $4 million in stock by the company.

The compensation reflects Citigroup's board's effort to reward executives for turning around a company that narrowed its annual loss to $1.61 billion last year from $27.7 billion in 2008. Citigroup's net income for the first two quarters of this year was $7.1 billion, though second-quarter profit declined 37% from a year earlier as revenue fell 33%.

"The Board is very pleased with the progress that the management team is making in restoring Citi to profitability," Citigroup Chairman Richard D. Parsons said in a statement today. While the salary of Citigroup CEO Vikram Pandit remains at $1 a year, Parsons said the board will increase that salary next year to a level "commensurate with the job."

Citigroup shares rose 2.7% to $3.90 a share in New York Stock Exchange trading today, and have increased 18% this year, outpacing this year's 4.1% advance for the Dow Jones Industrial Average.


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darryl

Giving bailout money to crooks is never a good idea,but then again,what are your elected officials?

October 01 2010 at 2:01 AM Report abuse rate up rate down Reply
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September 28 2010 at 10:03 AM Report abuse rate up rate down Reply
punnster

Now we know where Obama's stimulus money is going.

September 27 2010 at 3:40 AM Report abuse rate up rate down Reply
andrc657

These are the millionaires and billionaires the republicans want to give more huge tax cuts.

September 26 2010 at 2:41 PM Report abuse rate up rate down Reply
eejasp

These CEO's are just making ordinary common sense decisions. They are not worth more than $150,000 per year. They do not need personal jets at our expense. When we put money in mutual funds these brokerage houses rake in tons of money in management fees that we investors are pretty much unaware of.

September 26 2010 at 10:17 AM Report abuse +1 rate up rate down Reply
daveswrath0704

yes it a free maket but Citi is not part of the free market on till it pay back the 17 billion they got from the people hard work know as taxs and then they can pay as they like but I think those day are over no man should make more then a million max no one that smart or good

September 26 2010 at 9:04 AM Report abuse +1 rate up rate down Reply
ingfp

In a free market this pay is the norm. We pay athletes millions for sport entertainment, millions to lobbyist, millions to Gov Contractors. We pay teachers 40k a year, police 40 k a year, firemen 40k a year etc... The free market is what it is and that is driven by social behavior. If you are the arena of big business such as Citi then you will have the opportunity to make the big bucks in this system. Does this make it right? In a free market, whatever the people will pay for a good or service is a fair price. So quit whining and get tough because this is the hand you were dealt!

September 26 2010 at 8:23 AM Report abuse -1 rate up rate down Reply
bjw367

Outrageous!!!!!! Parsons is the failed former CEO of Time Warner. The only worthwhile comment he could make is "I'm resigning for the good of the company." Pandit isn't worth the "$1.00" salary he supposedly recieves. The reason he continues on the job is that he has the Board of Directors....in his pocket. The Board of Diectors, in the case of Citi, a sad joke. Finally the US Government, owner of 17% of this company with oversight capability....What can one say???

September 25 2010 at 9:32 PM Report abuse +2 rate up rate down Reply
Kimberly

The social stratification that is developing in the US is so similar to India's caste system. I am afraid we, the middle and former middle class, are being pushed back so far, we will never be able to buy another home or put our kids through college. Ha sthe face of America changed forever?

September 25 2010 at 6:35 PM Report abuse +2 rate up rate down Reply
marine1942

I do not see Obama screaming about this. Was he in on it ??

September 25 2010 at 4:55 PM Report abuse +3 rate up rate down Reply