Vikram Pandit, chief executive of Citibank’s parent, CitiGroup Inc (NYSE: C) stated that a $100 million annual salary is far too much for a bank executive.
Pandit made this statement during an interview with BusinessWeek Editor, Steven Alder, the 92nd St. Y Captains of Industry series in New York. Alder asked Pandit whether or not one of his employee’s $100 million in annual pay is too much and answered “yes.”
This statement comes as the Federal Reserve has announced that it plans on “approving” bank salaries in the wake of significant public criticism of banks that have received bailout money for paying its executives millions in salaries in bonuses using taxpayer funds. This plan would inject federal regulation into an area that was once wholly reserved for banks corporate boards and executives.
The question asked by Alder at the Thursday night event referred to a contract that Citigroup has with Andrew Hall, head of Citibank’s energy-trading unit, Phibro. Hall’s annual compensation depends on the performance of Phibro and could earn him up to $100 million in salary and bonuses this year.
