Vikram Pandit, the ex-CEO of Citigroup, is likely to come back to the hedge-fund field, as Portman Square Capital’s founder Sutesh Sharma is vying to hire him for his firm. Sharma launched hedge fund firm Portman Square Capital this year with $500 million.
Sutesh Sharma was a money manager at Vikram Pandit’s now defunct Old Lane hedge fund, which Vikram Pandit established in March 2006 along with John Havens. Vikram Pandit and John Havens joined Citigroup in 2007 when Citigroup bought the company for $800 million. Vikram Pandit was appointed as the new CEO of Citigroup on December 11, 2007, with the backing of the then interim chairman of Citigroup Robert Rubin.
In February 2009, Vikram Pandit declared to his board that his salary will be $1 per year without bonus until Citi returns to profitability. He admitted his mistake in letting the bank consider the acquisition of private jet plane after receiving around $45 billion in Troubled Asset Relief Program (TARP) funds. At the time, his total 2009 compensation was $128,751, with a base salary of $125,001 and other compensation of $3,750.
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. In May 2011, Citigroup announced $23.2 million retention award to Vikram Pandit, making him one of the highest paid CEOs, for leading Citi to five consecutive quarterly profits. In April 2012, shareholder voted against increasing his pay to $15 million.
Vikram Pandit resigned on October 16, 2012 as the Citigroup CEO unexpectedly. While Citigroup maintained that he resigned, Bloomberg News quoted unnamed sources who said that he was ousted from for damaging investor confidence and spoiling company relations with regulators.