The pay raise will be effective immediately.
Pandit pledged in 2009 to receive an annual salary of $1 until the struggling Citigroup returned to sustained profitability. Massive losses during the financial crisis forced the bank to take $45 billion in U.S. government bailout funds.
The board's announcement came three days after Citigroup reported its fourth consecutive quarterly profit -- and its first full year in the black since 2007.
The bank also shed the last of the government's common stock stake in December.
Chairman Richard Parsons said in the filing that Pandit has worked tirelessly to put Citi back on the right track, spearheading a restructuring that has returned the company to profitability and positioning the company for future growth. In light of these highly positive accomplishments, the base salary established for Vikram is merited.
Citigroup shares closed up 1.9 percent on Friday at $4.89.
(Reporting by Maria Aspan; Editing by Bernard Orr)