Citigroup Inc., soon to be one-third owned by the U.S. government, is asking the Treasury for permission to pay special bonuses to many key employees, according to people familiar with the matter. The request comes as Citigroup is grappling with broad government pay restrictions that could break apart its legendary energy-trading unit. People at that unit, Phibro, are threatening to leave because of pay caps tied to the U.S. bailout of Citigroup. Phibro has been the source of hundreds of millions of dollars in profits for the bank, and has paid out hefty compensation to its employees, including a roughly $100 million windfall last year for the unit's leader, Andrew Hall. Citigroup is looking for ways to free Phibro from the federal restrictions, including a spinoff of the unit, according to people familiar with the matter. Meanwhile, Citigroup is trying to get U.S. approval for special bonuses for many employees in the rest of the company. In a meeting earlier this month with Treasury Secretary Timothy Geithner, Citigroup Chief Executive Vikram Pandit made the case for the stock-based bonuses. Executives are describing the bonuses as "retention" awards designed to perk up demoralized employees who the company worries are vulnerable to poaching by rival firms, people familiar with the matter said. http://online.wsj.com/article/SB124096311194466041.html#mod=mktw
Scary how they need government approval to do this. Clearly they want to avoid another AIG situation. C is absolutely correct about the fact that they will lose good employees if they are not allowed to do this.
Sick of the mindset that everything is about money. Sick of "I'm staying if I'm paid well" rather than "I'm staying because I'm treated well".
What are you doing on a trading forum then? We are in finance for the money. Want to change the world? Join peace corp.
1) It is more scary that a company is run into the ground, and the executives need a bonus for their efforts. Bonus should reflect compensation for helping the company do well 2) In this terrible economy, there are plenty of talented financial professionals available. I think the C employees should be kissing the ground for still being employed.
I hate Citi They will pay bonus with my money to people who doesn't know how to run the business Where is this country going? Where is the common sense, business ethics and decency?
Sure we are in the money and it's another context. The point is that AIG, C, BAC were getting government's money so things are not the same position as before.
Plenty of talented financial professionals available, but NONE of them will go to C when they aren't eligible for bonuses. Or if they do it will only be temporary until they can find a new job that pays bonuses (as ALL private companies do). C will hire from the bottom of the barrel and run the company into the ground even more so than now. Public outrage over bonuses should be the least of our worries. By the way, no need to increase your font size. Your post does not carry any more weight because the words are bigger.
Isn't it interesting none of the top executives left the company, yet they said plenty of no name employee left. You know CEO don't work for the good of the country, so we should adjust their pay further downward.