Perhaps the most shocking news of yesterday morning was Vikram Pandit stepping down as Chief Executive Officer of Citigroup. According to the Company’s 8-K filing on October 16, 2012, Mr. Pandit resigned after the close of business on October 15th and Michael Corbat – head of the Company’s Europe, Middle East and Africa business operations – was appointed the new CEO by the board. Some news sources are reporting that Mr. Pandit was possibly forced out; however, in an interview with CNBC, the former CEO denies this claim.

Citigroup captured the attention of shareholders and the media during the height of the 2012 proxy season. The Company failed to earn a majority level of support for its say-on-pay vote, as shareholders signaled their dissatisfaction with the Mr. Pandit’s $14.8 million compensation package. According to Glass Lewis’ 2012 Say on Pay Season Review, shareholders voted against the say-on-pay resolution because of the apparent disconnect between pay with performance, unchallenging performance goals, and lack of long-term focus within the compensation program.

In regards to executive compensation, several questions have been trending about the potential severance package that is entitled to the departing CEO. In the Company’s most recent proxy statement, it states that NEOs “are not eligible for any severance pay upon termination of employment in excess of any benefit that may be available under Citi’s broad-based separation plans or local law” and “recent equity awards do not provide for acceleration of vesting upon

[…] termination of employment.” Moreover, it appears that Mr. Pandit will not receive accelerated vesting of equity or cash awards upon “termination for gross misconduct or voluntary resignation.” Mr. Pandit’s deferred stock and cash awards under his annual incentive compensation are still eligible to vest as long as he does not work for a “significant competitor.” On the other hand, any outstanding options and awards under the Key Employee Profit Sharing Plan will be forfeited.

A glance at the information disclosed in the Company’s proxy statement indicates that Mr. Pandit may exit the Company with $0 in severance. However, compensation committees have been known to draw up enormous transition agreements during a year of big shifts in management. So until then, shareholders and analysts will have to wait until the final details of his departure are completely fleshed out.