[NYTr] Ex-Citigroup boss could get $95m

[All the News That Doesn't Fit]

sent by tsimonds - Nov 9, 2007

BBC News 
http://news.bbc.co.uk/2/hi/business/7086368.stm

Ex-Citigroup boss 'to get $95m'

The former head of Citigroup, who stepped down on Sunday after the bank
revealed huge sub-prime related losses, could walk away with up to $95m
(#45m).

Citigroup confirmed Charles Prince would receive $29.5m in share awards,
share options and pension entitlements.

He is entitled to an incentive bonus based on share performance,
currently worth about $12m, and he also owns $53m worth of Citigroup
shares himself. [Well, they may plummet in value. - NYTr]

Mr Prince is one of several high-level casualties of the global credit
crunch.

Controversial compensation

Stan O'Neal parted company with Merrill Lynch last month after it
disclosed huge financial liabilities stemming from deteriorating US
mortgage-backed investments.

Mr O'Neal is expected to receive up to $161.5m in share and retirement
benefits.

Such levels of remuneration for departing bosses are highly
controversial with shareholder activists and some politicians regarding
them as unacceptable "rewards for failure".

Bank bosses have been heavily criticised for getting drawn into
high-risk investment strategies which have left some of Wall Street's
biggest names with billions of virtually worthless assets on their
balance sheets.

In a stock market filing on Thursday, Citigroup said Mr Prince - who was
paid $25m last year - would continue to receive a salary until the end
of the year.

In addition, he will be entitled to the use of an office and a driver
for the next five years or until he finds alternative employment.

But Mr Prince's financial package could be diluted by Citigroup's
falling share price, which has been hammered along with those of other
leading banks in the past week.

Its shares have fallen in each of the past eight days, wiping $48bn off
its market value.

"It looks like he lost $14m in the last week," said David Schmidt, a
consultant with executive compensation firm James F Reda.