Visitors Now:
Total Visits:
Total Stories:
Profile image
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Citigroup new CEO to slash 11,000 jobs After Paying Former Executives $14 Million

Thursday, December 6, 2012 20:20
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Citigroup announced that it will cut 11,000 jobs, or 4 percent of its workforce, in an effort to trim expenses.

The moves comes one month after Citigroup paid out nearly $14 million to two former executives, CEO Vikram Pandit and Chief Operating Officer John Havens, who were ousted for poor management. The Citigroup board forced Pandit out, “after a series of missteps this year left some directors feeling that the company wasn’t being managed effectively and that the board wasn’t kept adequately informed.”

Under Pandit and Havens, Citigroup lost 88 percent of its stock value. Still, the executives walked away with generous pay packages:

Vikram Pandit, Citigroup Inc. (C)’s ousted chief executive officer, will get about $6.7 million in 2012 compensation and will forfeit some awards tied to a $40 million retention package granted last year.

John Havens, who resigned last month as Citigroup’s chief operating officer on the same day as Pandit, will get about $6.8 million for 2012 and also forfeit some awards, the New York- based lender said yesterday in a regulatory filing. Citigroup is the third-largest U.S. bank by assets.

“Based on the progress this year through the date of separation, the board determined that an incentive award for their work in 2012 was appropriate and equitable,” Chairman Michael E. O’Neill said in the filing.

It is something of a trend for corporations to pay top executives high salaries, while employees feel the consequences of a struggling company. After failed Twinkie-maker Hostess declared bankruptcy, it cut workers’ pay 8 percent, but left the CEO’s $1.5 million salary untouched.

Citi’s New York City layoffs amount to nearly 8% of the area’s employees, and most will be operations and technology support staffers.

The cuts will save it about $900 million in 2013 and $1.1 billion annually in expenses beginning in 2014, the bank said. They will also mean a related fourth-quarter charge of about $1 billion.

Citi will slash about 1,900 jobs from its Institutional Clients Group, which includes trading and investment banking, and about 6,200 positions in its consumer banking business.

About 2,600 layoffs will come from its operations and technology group. It plans to eliminate 44 branches in the U.S. and 40 overseas.

Read more: http://thinkprogress.org/economy/2012/12/05/1285501/citigroup-jobs-bonuses/?mobile=nc



Source:

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.