Credit crunch? Cash still flows for some Citi execs

Posted Mar 14th 2008 4:13PM by Maura McCormack
Filed under: Management, Citigroup Inc. (C)

The markets may be seizing and the losses mounting, but some Citibank executives are still hauling in the cash. The New York Times reports that CEO Vikrim Pandit and other top executives were in theory only supposed to receive their salaries in 2007 due to the company''s poor performance to the tune of $20 billion in write-offs.

In reality, however, some executives came home with much more in deferred cash and equity awards in January 2008, much of defended by the compensation committee as "retention pay":

Vice Chairman Lewis Kaden: cash and equity worth $8.3 million, to top off his $500,000 salary;
Investment bank co-head Michael Klein:$19.3 million on a $212,500 salary;
Vice Chairman Steven Volk: $10.3 million non a $212,500 salary.

Others who will not be worried about paying their credit card bills:

Sallie Krawcheck: $2.9 million cash bonus, for a total compensation package of $12.5 million;
Winfried Bischoff: $2 million cash bonus to help his total reach $7.4 million;
CFO Gary Crittenden: cash bonus of $14 million for a grand total of $24.5 million.

Maybe these lucky execs can pool some of their resources that to buy some of the assets that Citibank will have to sell off to return to profitability.

Tags: C, Citigroup, executive compensation, Gary Crittenden, inthenews, Lewis Kaden, Michael Klein, Vikrim Pandit

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Reader Comments (Page 1 of 1)

3-14-2008 @ 6:08PM

Americas Watchdog said...

Hi Maura;

Great Blog. We have the National Mortgage Complaint Center & the Corporate Whistle Blower Center & we were thrilled to learn Citi is still paying its management.

About a week ago we started working on "auction rate preferred shares" (ARPS). Citi sold them "as just like a CD". "You can get your money back within a week". Now people who have ARPS can't get their money. We think its about a $500 billion dollar new disaster. To add insult to injury those who sold the ARPS are telling thousands & thousands of Americans who have all their money tied up in these "things".................."We will loan you 50% of what you have in our ARPS................while we sort this whole mess out".

Its good to know CITI still pays its management. They are doing a great job. Perhaps they can pay the taxes (due on April 15th) for the CITI customers who now have a tax bill, but no money to pay it.