New York: Ajaypal Banga, Asia-Pacific CEO of crisis-ridden behemoth Citigroup, will get a package of about Rs90 crore as the new second-in-command at payment services firm MasterCard, an offer that could be billed as the biggest package in the current state of the global economy.
Banga will join MasterCard as its new president and chief operating officer on 31 August and could possibly become CEO of the global financial services giant within a year’s time.
As per his employment contract with MasterCard, Banga will be paid around $2.15 million (about Rs10 crore) in salary and other allowances every year and would also get a one time benefit totaling about $15.9 million (about Rs80 crore) including a sign-on bonus of about $4.2 million.
The package, which includes over $11 million to be paid through stocks and remainder in cash, makes Banga the highest-paid banker after American Express CEO Kenneth Chenault and Citi chief Vikram Pandit as per the disclosed remuneration paid to the two in the year 2008.
For the year 2008, Chenault’s total compensation amounted to $42.8 million, while Citi’s Vikram Pandit received pay packet of $38.2 million.
However, the package for both Pandit and Chenault could come down in 2009, which could probably make Banga the highest paid banker. Pandit has already said he will only take a token salary of $1, while the other components of his compensation package are also expected to go down.