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Citigroup gives pay hikes to top 25 execs

/ Source: news services

The top 25 executives at Citigroup Inc., except for CEO Vikram Pandit, are getting multimillion dollar salary raises in stock and potentially much more in bonuses.

Citi released the amounts of the raises in a public filing for its top officers on Friday.

The company said Pandit's salary will rise above the token $1 he has earned for the past two years.

"Beginning in 2011, the Board intends to compensate Vikram commensurate with the job of CEO of Citi," Chairman Richard D. Parsons said in a statement.

Pandit said in February 2009 he would earn $1 annually until the bank returned to profitability. Citigroup has posted two consecutive profitable quarters so far in 2010, and is due to report third-quarter results in October.

The bank said Pandit will continue to earn $1 for the rest of 2010.

Citigroup plans to award the rest of its top executives incentive pay for the first nine months of 2010, in the form of common shares, at the end of September.

The biggest raise disclosed in the filing will go to John Havens, head of the bank's institutional clients group. Havens will get a cash salary of $500,000 this year, the maximum allowed under a federal pay cap, and $9 million of salary paid in stock.

That compares to a salary of $975,000 last year for Havens, also in a blend of cash and stock. Including other awards of stock and options last year, Havens' total compensation last year came to $11.2 million.

Citibank didn't disclose how much Havens might be awarded in other stock grants this year, but he could be eligible for a bonus this year of up to 50 percent of his salary, or $4.75 million.

Manuel Medina-Mora, head of consumer banking for the Americas, will also get a cash salary of $500,000, and $7.45 million of salary in stock, making him eligible for a bonus of up to $4 million. Last year, Medina-Mora's base salary was $972,000, and his total compensation including other awards of stock and options was $9.8 million.

Chief Financial Officer John Gerspach's salary will be $500,000 in cash and $4.17 million in stock, making him eligible for a bonus of up to $2.3 million. Last year, his cash and stock salary was $3.3 million, and his total compensation including other stock awards was $5 million.

Citigroup was among the hardest hit U.S. banks during the credit crisis of 2008, and received $45 billion in government bailout money under the Troubled Asset Relief Program, part of which was converted to stock last year.

The government still owns a 17 percent stake in Citigroup.