Vikram Pandit
Vikram Pandit | |
|---|---|
| Born | Vikram Shankar Pandit January 14, 1957 Nagpur, Maharashtra, India |
| Occupation(s) | Financier, investor, executive |
| Years active | 1983–present |
| Known for | CEO of Citigroup (2007–2012) |
Vikram Shankar Pandit (born 14 January 1957) is an Indian American financier and investor who held the position of chief executive officer at Citigroup from December 2007 until 16 October 2012. He currently serves as chairman and CEO of The Orogen Group.
In recognition of his impact on trade and industry, Pandit was honored with the Padma Bhushan, India's third highest civilian distinction, in 2008.
Early life and education
Pandit was born into a Marathi family in the Dhantoli neighborhood of Nagpur, Maharashtra, India. His father worked as an executive director at Sarabhai Chemicals. He began his education at Bishop Cotton School in Nagpur before completing his secondary studies at Dadar Parsee Youths Assembly High School in Mumbai. At the age of 16, Pandit relocated to the United States to attend Columbia University, where he earned a B.S. degree in electrical engineering within three years (1976), followed by an M.S. in 1977. Subsequently, he transitioned to economics and finance, achieving both an MBA and a PhD from Columbia Business School in 1986, with his doctoral thesis focusing on "Asset prices in a heterogeneous consumer economy."
Early career and tenure at Morgan Stanley (1983–2005)
Pandit began his career at Morgan Stanley in 1983 as an associate, becoming among the earliest Indian professionals at the firm. He was instrumental in establishing Morgan Stanley's electronic trading platform and expanding its prime brokerage services. By the year 2000, he had advanced to become president and chief operating officer overseeing global operations within the Institutional securities and Investment banking divisions. After more than twenty years with Morgan Stanley, Pandit departed in 2005 alongside John Havens, following being overlooked by then-CEO Philip J. Purcell.
Post-Morgan Stanley period and tenure at Citigroup (2006–2012)
In March 2006, Pandit joined forces with Havens and Guru Ramakrishnan to establish the hedge fund Old Lane LLC. In 2007, Citigroup acquired Old Lane for $800 million, thereby incorporating Pandit and Havens into its executive leadership team. Pandit assumed the roles of chairman and CEO of Citi Alternative Investments (CAI), later advancing to lead Citi's Institutional Clients Group.
On 11 December 2007, Pandit succeeded interim CEO Sir Winfried Bischoff as CEO of Citigroup, with strong endorsement from interim chairman Robert Rubin.
During the financial crisis in February 2009, Pandit testified before Congress that he had accepted a nominal salary of $1 per year without bonuses until Citi returned to profitability. He expressed regret over Citi’s contemplation of acquiring a private jet after receiving $45 billion through the Troubled Asset Relief Program. His total compensation for 2009 amounted to $128,751.
By January 2011, reflecting Citi’s recovery under his leadership, his base salary rose to $1.75 million. Following five straight quarters of profitability, Citi granted him a retention bonus totaling $23.2 million in May 2011, ranking him among the top-paid CEOs. Nevertheless, shareholders rejected a proposed $15 million compensation package for him by approximately 55% in April 2012.
Pandit's role as co-chair at Davos 2012 attracted scrutiny; analysts questioned Citi’s suitability as an industry representative given its underperformance over the preceding decade. At the forum, Pandit underscored Citi’s renewed focus on core banking principles and emphasized job creation as a vital challenge, forecasting the emergence of 400 million new employment opportunities within the next ten years.
Departure from Citigroup
On 16 October 2012, Vikram S. Pandit abruptly stepped down from his role as CEO of Citigroup. He was replaced by Michael Corbat, who had previously led Citigroup’s Europe, Middle East, and Africa operations. Although both Pandit and the company described the transition as a voluntary resignation, reports from unnamed board members cited by Bloomberg News indicated that Pandit’s exit was compelled by declining investor trust and deteriorating relationships with regulators. The New York Times later disclosed that Chairman Michael E. O'Neill orchestrated a covert, months-long campaign to oust Pandit, ultimately issuing an ultimatum demanding his immediate resignation, departure by year-end, or face dismissal. This exit came amid ongoing fraud accusations and significant investor losses.
Executive Compensation
During his tenure as Citigroup CEO in 2007, Pandit's annual compensation amounted to $3,164,320, which included a base salary of $250,000 alongside stock awards valued at $2.9 million. The following year, his remuneration increased sharply to $38.2 million, consisting of a salary of $958,333, stock grants worth $28.8 million, and options valued at $8.4 million; however, the total package's worth was negatively impacted by a drop in Citigroup’s stock price. Additionally, Pandit received $165 million from a hedge fund he owned that was acquired by Citi in 2007; this fund has since been shut down. In 2012, shareholders voted against a non-binding proposal endorsing a $15 million compensation package for him. Later that year, Pandit's earnings were approximately $6.7 million.
Activities After Citigroup
In May 2013, Pandit partnered with Indian businessman Hari Aiyar to acquire a 3% stake in JM Financial and simultaneously launched a $100 million fund focused on distressed assets. By May 2016, Pandit collaborated with Atairos Group to establish The Orogen Group—an operating entity investing in financial services—with backing from Comcast Corporation.
Affiliations and Recognitions
Pandit holds board positions at Columbia University, Columbia Business School, the Indian School of Business, and Trinity School in New York City. He is also affiliated with the secretive financial fraternity Kappa Beta Phi.
Personal Background
A U.S. citizen by naturalization, Pandit lives on Manhattan’s Upper West Side with his wife Swati and their two children, Rahul and Maya.
Actor Ajay Mehta portrayed him in the 2011 television movie Too Big to Fail.