Pandit’s $15 million pay package for 2011 and a multi-year retention package announced in May could total $53 million, based on regulatory filings and an analyst’s estimate. The CEO also received $80 million last year from the New York-based firm’s purchase of his Old Lane Partners LP hedge fund in 2007.
Pandit, 55, is being rewarded with more compensation after accepting a $1 annual salary for most of 2009 and 2010 as he helped the bank recover from the brink of collapse and boosted net income 4 percent to $11.1 billion last year. Still, the stock slid 44 percent last year and revenue fell almost 10 percent as Europe’s sovereign-debt crisis roiled markets.
“The awards have been very generous,” Frank Glassner, CEO of Veritas Executive Compensation Consultants in San Francisco, said in a phone interview last week. “It’s obvious Mr. Pandit has been working very, very hard, but they don’t seem to be in line with total shareholder return.”
Pandit received more than Stuart Gulliver, CEO of London- based HSBC Holdings Plc (HSBA), which generates most of its earnings abroad, as Citigroup does. Gulliver got 7.95 million pounds ($12.5 million) including salary, bonus and equity awards for 2011. Net income climbed 28 percent to $16.8 billion as revenue was little changed, filings show. The stock fell 25 percent.
Most U.S. banks haven’t yet announced total 2011 CEO compensation. Pandit’s pay for the year, disclosed in a March 8 filing, included stock awards, $1.67 million in salary and a $5.33 million cash bonus, his first in four years.
Bank of America Corp. (BAC) cut CEO Brian T. Moynihan’s package for 2011, granting him no cash bonus and freezing his salary at $950,000, a person briefed on the matter said last month. It gave him $5.9 million in restricted stock units, mostly linked to future performance, according to a filing. The bank returned to profitability in 2011 with net income of $1.45 billion, as revenue slid 16 percent. The shares tumbled 58 percent.
JPMorgan Chase & Co. (JPM), the largest U.S. lender, is likely to award CEO Jamie Dimon a $23 million package for 2011, after the New York-based firm posted a record $19 billion profit, a person briefed on the plans said in January. Revenue at the bank slipped 5.3 percent last year, and the stock fell 22 percent.