Vikram Pandit

Last updated

Vikram Pandit
Vikram Pandit in WEF, 2011.jpg
Vikram Pandit at the World Economic Forum in 2011.
Born (1957-01-14) 14 January 1957 (age 67) [1]
Nagpur, Bombay State, India (present-day Maharashtra) [2]
Nationality American
Alma mater Columbia University (BS, MS, MBA, PhD)
Occupations
Years active1983–present
Board member of Columbia University
Columbia Business School
Indian School of Business
SpouseSwati [4]
ChildrenRahul and Maya [4]
Awards Padma Bhushan (2008)

Vikram Shankar Pandit (born 14 January 1957) is an Indian-American banker [5] and investor who was the chief executive officer of Citigroup from December 2007 [6] to 16 October 2012 [7] [8] and is the current chairman and chief executive officer of The Orogen Group. [9]

Contents

Pandit has been honoured with the Padma Bhushan, the third highest Indian civilian award, for his contributions to the trade and industry in 2008 by the Government of India. [10]

Early life and education

Vikram Pandit was born in Dhantoli locality of Nagpur, Maharashtra, India, to an affluent Marathi family. [11] [12] His father, Shankar B. Pandit, was an executive director at Sarabhai Chemicals in Baroda. [13] [14] [15]

Pandit studied at Bishop Cotton School in Nagpur, [16] and then completed his schooling at the Dadar Parsee Youths Assembly High School in Dadar, Mumbai. When Pandit was 16 years old, he moved to the United States [13] to attend Columbia University [17] for his undergraduate program and, in 1976, earned his B.S. degree in electrical engineering in only three years. He then completed his M.S. in electrical engineering in 1977. Pandit subsequently turned to economics and finance and earned an MBA and PhD in finance from Columbia Business School in 1986, after publishing a thesis involving a complex financial puzzle, titled "Asset prices in a heterogeneous consumer economy." [13] [18] [19] [20]

Professional career

Early career and Morgan Stanley (1983–2005)

During his early professional years, he taught economics at Columbia, then had a stint as a professor at Kelley School of Business, Indiana University and Brock University in St. Catharines, Canada.[ citation needed ]

He joined Morgan Stanley as an associate in 1983, one of the first Indians to join the company. [1] [13] [21] In 1990, Vikram Pandit was chosen as the managing director and head of the US Equity Syndicate unit of Morgan Stanley and by 1994, he had risen to become managing director (MD) and head of its worldwide Institutional securities division.

He was instrumental in building Morgan Stanley's electronic trading platform and prime brokerage division and in 2000, ultimately rose to the post of president and chief operating officer of its worldwide operations of the Institutional securities and Investment banking businesses. [4]

In 2005, after more than two decades with Morgan Stanley, Vikram Pandit decided to leave the firm along with John Havens after being passed over by Philip J. Purcell. [22] [23]

Post Morgan Stanley and joining Citigroup (2006 – 2012)

In March 2006, Pandit and John Havens, along with Guru Ramakrishnan (former global head of trading, technology and new products in the equities group at Morgan Stanley), started the hedge fund Old Lane LLC. [24] Citi bought the company in 2007 for $800 million, bringing both Pandit and Havens into Citi leadership. [25] Citi named Pandit chairman and CEO of Citi Alternative Investments (CAI) unit and he later led Citi's Institutional Clients Group.

On 11 December 2007, Pandit was named the new CEO of Citigroup, replacing interim-CEO Sir Winfried Bischoff. Pandit was strongly supported by then interim chairman of Citigroup Robert Rubin, [26] the effective successor to Chuck Prince. Prince had resigned as chairman and CEO of Citigroup in November 2007, due to unexpectedly poor third-quarter performance, mainly due to CDO- and MBS-related losses.

On 11 February 2009, Pandit testified to Congress that he had declared to his board of directors, "My salary should be $1 per year with no bonus until we return to profitability." [27] [28] He also struck an apologetic tone for letting the bank consider completing the purchase of a private jet plane after receiving some $45 billion in Troubled Asset Relief Program (TARP) funds. [29] His total 2009 compensation was $128,751, with a base salary of $125,001 and other compensation of $3,750. [30]

In January 2011, after working for two years for a salary of $1 a year, his annual base was raised to $1.75 million for the progress Citi made under Vikram's leadership. [30] [31] [32] After posting five consecutive quarterly profits, Citigroup in May 2011, announced $23.2m retention award to Pandit making him one of the highest paid CEOs. [33] [34] In April 2012, shareholders voted against increasing his pay to $15 million. About 55% of the votes cast were against the compensation package. [35]

His co-chairing of Davos 2012 was criticized, [36] with Mike Mayo, an analyst with Crédit Agricole in New York remarking: "What kind of signal does that send, that the bank that was the worst-performing in our country over the last decade and whose stock price is still down significantly since he took over, is the ambassador for our financial industry?" [37] At Davos 2012, Pandit said that Citigroup was going "back to the basics of banking" in response to public anger about the financial crisis, and argued that, "The single biggest issue facing us is the question of jobs," giving an estimate of 400 million jobs in the next 10 years. [38]

Resignation

On 16 October 2012, Pandit unexpectedly resigned as Citigroup CEO. [8] Michael Corbat, previously Citigroup's CEO of Europe, Middle East, and Africa, was named as his replacement. [39] While Pandit and the company maintain that he resigned, Bloomberg News cited anonymous board sources indicating that Pandit was forced out by the board after eroding investor confidence and damaging company relations with regulators over an extended period. [40] The New York Times later identified Chairman Michael E. O'Neill as the driving force behind a months-long secret effort to oust Pandit, which culminated in a surprise ultimatum to Pandit stating that he must resign immediately, resign at the end of the year, or be fired. [41] His resignation followed multiple payouts to investors during ongoing fraud allegations. [42] [43] [44]

Compensation

While CEO of Citigroup in 2007, Vikram S. Pandit earned an annualized compensation of $3,164,320, which included a base salary of $250,000, stocks granted of $2,914,320, and options granted of $0. [30] In 2008, he earned a total compensation of $38,237,437, which included a base salary of $958,333, stocks granted of $28,830,000, and options granted of $8,432,911. However, after adjusting for Citigroup's sunken share price, the package was worth just a few million dollars. [32] Pandit received $165 million for his hedge fund which was purchased by Citi in 2007. [45] The fund has since been closed. In 2012, Citigroup shareholders voted in favor of a non-binding resolution to reject a $15 million pay package for Pandit. In November 2012, Pandit was paid about $6.7 million. [46]

Post-Citigroup

It was reported in May 2013 that Pandit and Hari Aiyar, another Indian executive, were acquiring a 3 percent equity stake in JM Financial and launching a $100 million fund to invest in distressed assets. [47] It was reported in May 2016 that Pandit and Atairos Group created a new operating company, The Orogen Group, to invest in financial services companies with backing from Comcast Corporation. [48]

Board memberships and honors

Pandit is a member of the boards of Columbia University, Columbia Business School, the Indian School of Business, and Trinity School. He is also a member of Kappa Beta Phi. [49] He serves as director of the Institute of International Finance. [50] He was on the board of NASDAQ OMX, the New York City Investment Fund, from 2000 to 2003.

In 2008, Pandit was awarded the Padma Bhushan by the Government of India. [1]

Personal life

Pandit, a naturalized citizen of the United States, lives in an apartment on the Upper West Side of Manhattan. He and his wife, Swati, have two children, Rahul and Maya. [51]

See also

Related Research Articles

<span class="mw-page-title-main">Morgan Stanley</span> American financial services company

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 41 countries and more than 75,000 employees, the firm's clients include corporations, governments, institutions, and individuals. Morgan Stanley ranked No. 61 in the 2023 Fortune 500 list of the largest United States corporations by total revenue and in the same year ranked #30 in Forbes Global 2000.

<span class="mw-page-title-main">Citigroup</span> American multinational investment bank and financial services corporation

Citigroup Inc. or Citi is an American multinational investment bank and financial services company in New York City. The company was formed by the merger of Citicorp, the bank holding company for Citibank, and Travelers in 1998; Travelers was spun off from the company in 2002.

<span class="mw-page-title-main">Citibank</span> American banking company

Citibank, N.A. is the primary U.S. banking subsidiary of Citigroup, a financial services multinational corporation. Citibank was founded in 1812 as City Bank of New York, and later became First National City Bank of New York. The bank has branches in 19 countries. The U.S. branches are concentrated in six metropolitan areas, New York City, Chicago, Los Angeles, San Francisco, Washington, D.C., and Miami.

<span class="mw-page-title-main">Charles Prince</span> American corporate executive and lawyer (born 1950)

Charles Owen "Chuck" Prince III is an American corporate executive and lawyer. He is a former chairman and chief executive of Citigroup. He succeeded Sandy Weill as the chief executive of the firm in 2003, and as the chairman of the board in 2006. On November 4, 2007, he retired from both his chairman and chief executive duties due to unexpectedly poor 3rd quarter performance, mainly due to CDO and MBS related losses, while still receiving a $38m pay package.

<span class="mw-page-title-main">Sallie Krawcheck</span> American business executive (born 1964)

Sallie L. Krawcheck is the former head of Bank of America's Global Wealth and Investment Management division and is currently the CEO and co-founder of Ellevest, a digital financial advisor for women launched in 2016. She has been called "the most powerful woman on Wall Street."

<span class="mw-page-title-main">John Thain</span> American businessman

John Alexander Thain is an American financial executive and investment banker. He was president and co-COO of Goldman Sachs, and then CEO of the New York Stock Exchange. Thain then became the last chairman and CEO of Merrill Lynch & Co. before its merger with Bank of America. He was designated to become president of global banking, securities, and wealth management at the newly combined company, but resigned on January 22, 2009. Ken Lewis, CEO of Bank of America, reportedly forced Thain to step down after several controversies, such as the losses at Merrill Lynch which proved to be far larger than previously estimated, and the award of huge executive bonuses. Thain then was chairman and CEO of the CIT Group. He has been a board member of Uber since 2017.

<span class="mw-page-title-main">Peter R. Orszag</span> American economist (born 1968)

Peter Richard Orszag is an American business executive and former government official. He is the chief executive officer (CEO) of Lazard. Announced as Lazard’s incoming CEO on May 26, 2023, he assumed the role on October 1, 2023, also joining the board.

Gary Lewis Crittenden is an American financial manager. He is an executive director of HGGC, and was previously CEO and chairman. He is also the former chairman of Citi Holdings. He was chairman of Citadel, Power Holdings, and iQor; lead independent director of Pluralsight; and has sbeen on the boards of Extra Space Storage, Staples Inc., Ryerson, Inc., TJX Companies, and Utah Capital Investment Corp. From 2000 to 2007, Crittenden was executive vice president and chief financial officer (CFO) of American Express, and from March 2007 to March 2009, he was the chief financial officer of Citigroup.

Sir Winfried Franz Wilhelm Bischoff was a German-born British banker who was the chairman of Lloyds Banking Group. He previously served as chairman and interim CEO of Citigroup in 2007. He was succeeded as CEO by Vikram Pandit on 11 December 2007. Bischoff stepped down as chairman on 23 February 2009 and was replaced by Richard Parsons. He had dual British and German citizenship.

A one-dollar salary is a practice used when a business executive or government employee wishes to work without direct compensation, but must receive a salary above zero to legally distinguish them from a volunteer. The concept first emerged in the early 1900s, when various American leaders of industry offered their services to the government during times of war. In the late 1990s and early 2000s, many executives began accepting one-dollar salaries—often in the case of struggling companies or startups—with the potential for further indirect earnings as the result of stock ownership. Many choose to reduce their salary to avoid income taxes.

<span class="mw-page-title-main">Wachovia</span> Defunct banking company

Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo and Company in 2008, Wachovia was the fourth-largest bank holding company in the United States, based on total assets. Wachovia provided a broad range of banking, asset management, wealth management, and corporate and investment banking products and services. At its height, it was one of the largest providers of financial services in the United States, operating financial centers in 21 states and Washington, D.C., with locations from Connecticut to Florida and west to California. Wachovia provided global services through more than 40 offices around the world.

<span class="mw-page-title-main">Ken Lewis (executive)</span> Former CEO, president, and chairman of Bank of America

Kenneth D. Lewis is the former CEO, president, and chairman of Bank of America, currently the second largest bank in the United States and twelfth largest by total assets in the world. While CEO of Bank of America, Lewis was noted for purchasing the failing companies Countrywide Financial and Merrill Lynch, resulting in large losses for the bank and necessitating financial assistance from the federal government. On September 30, 2009, Bank of America confirmed that Lewis would be retiring by the end of the year. Lewis was replaced by Brian Moynihan as president and CEO and Walter Massey as chairman of the board.

<span class="mw-page-title-main">Ajay Banga</span> American business executive (born 1959)

Ajaypal Singh "Ajay" Banga is an Indian-born American business executive. He is currently the president of the World Bank Group. He was the executive chairman of Mastercard, after having previously served as president and chief executive officer (CEO) of the company from July 2010 until December 31, 2020. He retired from this position on December 31, 2021, and joined General Atlantic as its vice chairman.

John E. Havens is the former chairman of Citigroup spinoff, Napier Park Global Capital, and is also the former president and chief operating officer of Citigroup.

Michael E. O'Neill is an American business executive. He served as chairman of Citigroup from 2012 to 2019.

<span class="mw-page-title-main">Michael Corbat</span> American banker (born 1960)

Michael Louis "Mike" Corbat is an American banker who served as the chief executive officer of Citigroup from 2012 to 2021. His 2012 welcome from The New York Times described him as a "Jack-of-All-Trades".

Frank J. Bisignano is an American businessman and the president and CEO of Fiserv. He previously was the CEO of First Data, and the COO of JPMorgan Chase.

<span class="mw-page-title-main">Jane Fraser (executive)</span> British-American banking executive (born 1967)

Jane Fraser is a British-American banking executive who is the chief executive officer (CEO) of Citigroup, a position she has held since March 2021. Educated at Girton College, Cambridge, and Harvard Business School, she worked at McKinsey & Company for 10 years, rising to partner prior to joining Citigroup in 2004. In 2019, she was named president of Citigroup and CEO of its consumer banking division.

<span class="mw-page-title-main">Citibank United Arab Emirates</span> Franchise subsidiary of Citigroup

Citibank National Association, United Arab Emirates commonly known as Citibank U.A.E., is a franchise subsidiary of Citigroup, a multinational financial services corporation headquartered in New York City, United States. Citi U.A.E. is connected by a network spanning 98 markets across the world. The phone support call center for Citibank U.A.E. retail banking clients is based at Citibank Bahrain.

Guru Ramakrishnan is an Indian-American investor and entrepreneur who works in the hedge fund and private equity sectors. He is the founder and CEO of Meru Capital Group and was a co-founder of Old Lane Partners, LP. Ramakrishnan has held roles in financial institutions and has participated in philanthropic and academic initiatives.

References

  1. 1 2 3 "Vikram Pandit: A Profile". 21 March 2011. Retrieved 14 January 2012.
  2. ↑ "Profile- Vikram Pandit". Bloomberg Businessweek. 18 December 2007. Archived from the original on 1 May 2010. Retrieved 14 January 2012.
  3. ↑ Board of Directors of Bombardier Inc.
  4. 1 2 3 "Published in PortfolioProfile: Vikram Pandit". Archived from the original on 10 June 2015. Retrieved 14 January 2012.{{cite web}}: CS1 maint: unfit URL (link)
  5. ↑ "Vikram has to put in lot of efforts, says dad". The Times of India . 12 December 2007. Archived from the original on 5 November 2012. Retrieved 13 July 2012.
  6. ↑ "Shake up at Citigroup". International Herald Tribune. Retrieved 11 December 2007.
  7. ↑ Daniel Wagner (16 October 2012). "Vikram Pandit steps down as Citigroup CEO". Yahoo News.
  8. 1 2 Silver-Greenberg, Jessica; Craig, Susanne; de la Merced, Michael J. (17 October 2012). "Citigroup's Chief Resigns His Post in Surprise Step". Section: A. New York Times.
  9. ↑ Orogen Group Team
  10. ↑ "119 get Padma awards". Hindustan Times. Retrieved 25 January 2008.
  11. ↑ R Gopalakrishnan (17 December 2018). Crash: Lessons from the entry and exit of CEOs. Penguin Random House India Private Limited. p. 87. ISBN   9789353053864 . Retrieved 17 December 2018.
  12. ↑ Michael Hirsh (28 March 2011). "The Resurrection". National Journal . Archived from the original on 22 September 2013.
  13. 1 2 3 4 Hagan, Joe (1 March 2010). "How Citigroup CEO Vikram Pandit Became the Most Powerless Powerful Man on Wall Street". New York Magazine. Retrieved 5 October 2010.
  14. ↑ "Vikram Pandit". Rediff.com. 13 December 2007. Retrieved 14 January 2012.
  15. ↑ "Vikram Pandit". Rediff.com. 18 December 2007. Retrieved 14 January 2012.
  16. ↑ "Bishop Cotton School starts CBSE pattern school". The Times of India.
  17. ↑ "Executive Profile Vikram S. Pandit". Bloomberg Businessweek. 14 November 2014. Archived from the original on 20 October 2012.
  18. ↑ "Office of the Secretary of The University". Columbia University in The City of New York. Retrieved 11 December 2007.
  19. ↑ "Asset prices in a heterogeneous consumer economy". Archived from the original on 21 January 2016. Retrieved 14 January 2012.
  20. ↑ Pandit, Vikram Shankar (1986). Google Books, Asset prices in a heterogeneous consumer economy.
  21. ↑ "Bio of Vikram Pandit" . Retrieved 14 January 2012.
  22. ↑ "Exile From Wall Street". The New York Times. 21 August 2005.
  23. ↑ "How Purcell Lost His Way". Bloomberg BusinessWeek. 11 July 2005. Archived from the original on 24 October 2005. Retrieved 21 January 2011.
  24. ↑ "Pandit, Havens to Start Hedge Fund With $2 Billion". Bloomberg. 16 March 2006. Retrieved 14 January 2012. by Katherine Burton
  25. ↑ Dash, Eric (19 January 2011). "Citigroup Names John Havens as President and C.O.O." Dealbook.nytimes.com. Retrieved 21 January 2011.
  26. ↑ "Vikram Pandit is Citigroup CEO". Rediff.com. 31 December 2007. Retrieved 5 October 2010.
  27. ↑ "Citigroup's Vikram Pandit to Take $1 Salary, No Bonus (Update4) by Elizabeth Hester". Bloomberg. 11 February 2009. Archived from the original on 15 March 2012.
  28. ↑ Farrell, Greg (17 March 2009). "Citigroup chief awarded $10.82 million". Financial Times. New York. Retrieved 20 March 2012.
  29. ↑ Goldman, David (6 April 2009). "CNNMoney.com's bailout tracker". CNN.
  30. 1 2 3 "CEO Compensation for Vikram S. Pandit". Equilar. 2007. Archived from the original on 14 April 2009. Retrieved 14 April 2009.
  31. ↑ Dash, Eric (22 January 2011). "Vikram Pandit Will FINALLY Be Making More Than $1 Per Year". businessinsider.com. Retrieved 14 January 2012.
  32. 1 2 Eric Dash Dash, Eric (24 September 2010). "For Pandit, $1 This Year, a Big Bump in 2011". The New York Times.
  33. ↑ Dash, Eric (18 May 2011). "As Citi Revives, Pandit Wins Big Pay Package". The New York Times.
  34. ↑ "Citigroup gives $23.2m retention award to CEO Vikram Pandit". The Times of India. 19 May 2011. Archived from the original on 1 January 2012.
  35. ↑ Silver-Greenberg, Jessice; Nelson D. Schwartz (18 April 2012). "Citigroup's Chief Rebuffed on Pay by Shareholders". The New York Times. Retrieved 18 April 2012.
  36. ↑ Jonathan Weil (26 January 2012). "Pandit Does Davos, 0.1% Gloat, Madness Reigns". Bloomberg. Retrieved 26 January 2012. It's stunning when you think about it: How does Pandit, who owes much of his fortune to the American public's largess, wind up being showcased as a paragon of leadership and free enterprise, little more than a year after the U.S. Treasury finally sold the last of its Citigroup common stock?
  37. ↑ Christine Harper; Elisa Martinuzzi (24 January 2012). "Pandit Pariah No More as U.S. Bankers in Ascendance at Davos". Bloomberg. Retrieved 24 January 2012. Some of Pandit's critics at home question whether he should take a bigger role at Davos given his bank's underperformance. Shares in the lender, which received a $45 billion government bailout during the financial crisis, have plunged 94 percent in the past decade, the most of the 24 companies in the KBW Bank Index, and 91 percent since Pandit became CEO in 2007.
  38. ↑ Keith Campbell; Christine Harper (25 January 2012). "Citigroup Targets Banking Basics Amid 'Anger,' Pandit Says". Bloomberg. Retrieved 26 January 2012.
  39. ↑ de La Merced, Michael J. (16 October 2012). "Pandit Steps Down as Citi's Chief". The New York Times.
  40. ↑ "Citigroup Board Said to Oust Pandit After Multiple Setbacks". Archived from the original on 18 October 2012.
  41. ↑ Jessica Silver-Greenberg and Susanne Craig (25 October 2012). "Citi Chairman Is Said to Have Planned Chief's Exit Over Months". The New York Times. Retrieved 25 October 2012.
  42. ↑ Independent (8 November 2012). "Why Is The S.E.C. Concealing Massive Citigroup Fraud?". Daily Bail. Retrieved 8 November 2012.
  43. ↑ Independent (5 September 2012). "Did Citigroup Defraud Billions from U.S. Ally Abu Dhabi?". Alter Net. Retrieved 5 September 2012.
  44. ↑ "Citigroup to pay $2 billion to Enron investors". NBC News. 6 October 2005. Retrieved 6 October 2005.
  45. ↑ John Cassidy "What Good Is Wall Street?". The New Yorker. 29 November 2010. Retrieved 14 January 2012.
  46. ↑ Griffin, Donal (10 November 2012). "Citigroup Will Pay Former Chief Pandit $6.7 Million". Bloomberg. Retrieved 30 January 2013.
  47. ↑ Braithwaite, Tom (17 May 2013). "Pandit Returns to Banking via India". The Financial Times. Retrieved 17 May 2013.
  48. ↑ "Ex-Citigroup Head Vikram Pandit Gets Back to His Finance Roots". The Wall Street Journal. 17 May 2016.
  49. ↑ Roose, Kevin (2014). Young Money: Inside the Hidden World of Wall Street's Post-Crash Recruits. London, UK: John Murray (Publishers), An Hachette UK Company. p. 208. ISBN   978-1-47361-161-0.
  50. ↑ "The Institute of International Finance, Inc., 2010 Press Releases". Iif.com. Retrieved 7 August 2011.
  51. ↑ "Vikram S. Pandit". Forbes. Archived from the original on 29 September 2008.
Business positions
Preceded by Citigroup CEO
2007–2012		Succeeded by
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.