Bloomberg reports that that’s because the plan doesn’t count losses at Citi Holdings, the division of unwanted assets that includes the Smith Barney brokerage, a regulatory filing shows. The exclusion may mean more pay for Pandit this year even as the board considers cuts in his 2011 compensation package, which shareholders rejected in April amid criticism that he collected millions of dollars in rewards too easily.
'I can’t see any good reason to exclude that from an assessment of the group’s performance except to ring-fence his bonus', said Paul Hodgson, a researcher at GMI Ratings, a corporate governance consulting firm based in New York. 'It seems somewhat disingenuous to exclude potential catastrophic losses from anything Smith Barney might have done from the cumulative net income that he was being judged on'.
Citigroup’s board, led by Chairman Michael O’Neill, promised to discuss Pandit’s 2011 pay with top shareholders after 55% of the votes cast rejected the package.
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