Citigroup to end payouts to its departed executives
CITIGROUP is to halt the severance payments it makes to departed executives, including its former head of investment banking Michael Klein.
Senior figures at the Wall Street bank were promised severance packages paid in cash instalments when they parted company with Citigroup last year, including $42m (£25.3m) in cash and stock to be paid to Klein during 2009, on the condition that he did not join a rival.
The bank has already paid out $50m of the combined $100m it pledged to pay departing executives but is now planning to end the payments to avoid a public outcry.
Citigroup, led by chief executive Vikram Pandit, has received $45bn from the US government’s Troubled Asset Relief Programme so far, prompting anger over its use of corporate jets.
But sources familiar with the situation said yesterday that the government had not applied any pressure to force the bank to end the payouts.