The bulk of the exit pay was linked to previously earned benefits and stock since his departure was deemed a retirement; he did not receive any severance pay.
This is how a former top banker in treasury described his time in a bank that failed: "Risk produces profits, profits lead to a higher share price, and executive pay was linked to that.
In 1993, Mr. Elson noted, Congress limited the tax deductibility of executive salaries to $1 million, unless it could be demonstrated that the extra pay was linked to performance incentives.
A leading City fund manager, Richard Buxton, the head of UK equities at Old Mutual Global Investors, said this would be a way to ensure that directors' pay was linked to the potential losses for shareholders.
Cable also told the business, innovation and skills select committee of MPs that he was "pressing" banks for evidence that executive pay was linked to lending, as had been pledged under Project Merlin.
The issue was whether pay was linked to performance and whether those targets were spelled out and sustainable over the long term, said Anne Simpson, director of corporate governance for Calpers, which owns 9.7 million Citigroup shares.
