Citigroup Still Paid Millions to Some Top Execs in 2009
Feinberg approved the structure of the pay and bonus package, but did not review its amount because Havens wasn't one of the company's top-20 highest-paid executives last year, according to the Journal.
Does this mean Citigroup will play round robin with its top-20 executives each year so they can avoid Feinberg's scrutiny? Will 20 others be the top 20 next year?
Havens, of course, isn't the only one who got a big bonus. Citigroup's second-highest-paid employee appears to have been Manuel Medina Mora, who runs the Latin American operations. His pay package included 2.55 million shares worth $8.5 million on Dec. 30 and about $9 million as of market close Tuesday. He also received a cash salary that was reportedly less than $500,000. As with Havens, Feinberg reviewed only Mora's pay structure.
How can a bank that has the U.S. government as its biggest shareholder allow bonus packages of this size? Though Citigroup has repaid $20 billion of the TARP money it received, the government still holds a 27% stake in the bank.
The Journal revealed it had a document that identified three other Citigroup executives who were due to receive about $9 million in total compensation in 2009. Wonder how these pay packages compare to the 20 highest-paid executives that Feinberg did review?
Citigroup's lowest-paid executive was CEO Vikram Pandit: He has agreed to accept total compensation of $1 a year until the financial giant returns to sustained profitability, which hasn't happened yet.