Vikram Pandit's successor Michael Corbat to take home $1.5 million base pay

NEW YORK: Michael Corbat, the new chief and successor of Vikram Pandit at Citigroup, will take home an annual base salary of $ 1.5 million besides regular incentives and other benefits.

However, Corbat's salary is lower than Pandit whose base pay touched $ 1.75 million in 2011.

In a development that took industry watchers as well as the Wall Street by surprise, Citi on Tuesday announced the exit of Pandit with immediate effect.

However, Citi, which under Pandit's stewardship returned to profitability, is yet to disclose details of severance package for the former India-born chief executive.

"Corbat will receive an annual base salary of $ 1.5 million and regular incentive awards and benefits for his service as Chief Executive Officer of the company," Citi said in a regulatory filing.

Details about incentives and benefits for Corbat were not disclosed.

Nagpur-born Pandit, who took over the reins of Citi in December 2007, took just a base salary of $ 1 till the banking behemoth turned profitable.

According to Citi's annual proxy filing, Pandit agreed to accept $ 1 per year in salary effective from February 2009.

"Amounts in excess of $ 1 for 2009 reflect compensation paid in 2009 prior to his announcement. Effective January 18, 2011, Pandit's annual rate of base salary was increased to $ 1.75 million," the filing had said.

Pandit's overall compensation was more than $ 14.86 million in 2011. However, shareholders had voted against the higher pay package to him in April this year.

Since the 2008 financial meltdown, which was largely blamed on excessive risk taking by companies, higher executive compensation has become a lightning rod for criticism.

Meanwhile, 52-year-old Corbat, who has a long association with Citi, was earlier the group's CEO of Europe, Middle East and Africa. In that position, he oversaw those regions' consumer banking, corporate and investment banking, securities and trading, among others.

He joined Salomon Brothers - which was acquired by Citi - in 1983.