Jan. 25 (Bloomberg) -- Citigroup Inc., the U.S. bank that last week posted a record loss, gave new Chief Executive Officer Vikram Pandit $26.7 million in stock and said executive committee Chairman Robert Rubin elected to forgo a stock bonus.
Pandit, who took over for ousted CEO Charles ``Chuck'' Prince in December, got 1.09 million shares on Jan. 22, New York- based Citigroup said in a regulatory filing. Pandit will receive no cash bonus, company spokesman Michael Hanretta said. Last year, Prince got $10.7 million in stock in addition to a $13.2 million cash bonus, for a combined $23.9 million.
Citigroup last week said it was cutting about 4,200 jobs and curbing year-end bonuses for top executives after $18.1 billion in writedowns on subprime mortgages and bonds led to a fourth- quarter loss. Rubin, a former U.S. Treasury secretary who joined Citigroup in 1999, told the board's compensation committee that he didn't want a stock bonus, Hanretta said.
``He felt that at this stage in his career, and in his circumstances, that a retention equity grant this year was not necessary, and that the grants were better awarded to others at different stages in their careers,'' Hanretta said.
Last year, Rubin got $6.81 million in stock on top of an $8.4 million cash bonus.
Wall Street and bank executives typically receive year-end bonuses in a combination of stock and cash. Citigroup this year increased the proportion of bonuses awarded in stock to put more emphasis on executive retention and long-term gains in the share price, Hanretta said. Most of the highest-paid executives had their cash bonuses cut in half, he said, declining to comment on grants to specific individuals.
Stock Options
Pandit also got options on 3 million Citigroup shares, with strike prices ranging from $24.40 to $36.60.
The filings didn't disclose the executives' cash bonuses. Some of those awards will be published in the company's annual shareholder letter later this year. The stock awards vest over four years, meaning they become eligible for sale by the executives in annual increments of 25 percent.
Citigroup shares closed at $24.40 the day the bonuses were awarded. That figure was less than half the $54.77 closing price on bonus day last year, forcing Citigroup to quadruple the number of shares awarded to executives whose stock bonuses it wanted to double. Today, Citigroup fell 69 cents to $26.64 in composite trading on the New York Stock Exchange at 4:14 p.m.
Neither Rubin nor director Richard Parsons, who chairs the board's compensation committee, was available for comment, Hanretta said.
Chairman Win Bischoff got $4.67 million in stock, double the year-earlier amount.
Krawcheck's Award
Sallie Krawcheck, head of Citigroup's wealth-management division, got $8.43 million in stock, a 79 percent increase over the prior year.
Vice Chairman Stephen Volk got $8.29 million in stock, an 81 percent jump. Vice Chairman Lewis Kaden got $4 million, a 22 percent increase. Ajay Banga, head of the bank's international- consumer division, was awarded $6.01 million in stock, up 93 percent. Steven Freiberg, who oversees the U.S. consumer division, received $4.36 million in stock, a 40 percent increase.
Chief Financial Officer Gary Crittenden, who joined Citigroup last year from American Express Co., got a $9.21 million stock bonus.
Michael Klein, who oversees investment banking, got a $12.8 million stock bonus. His bonus for the prior year wasn't disclosed.
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