With a shareholder vote on 2012 executive pay for Citigroup’s top brass approaching, the bank is putting on the forward press, rationalizing the gaudy pay packages that investors have condemned over the last few years.
A profit-sharing plan introduced in 2009, one rejected by shareholders last year in a non-binding ballot, “helped retain Citi’s key leaders,” the bank said in a filing obtained by Bloomberg. “The new CEO, his leadership team, and other key executives remained with the firm and enabled Citi to return to sustained profitability.”
The plan, which began paying out this year, will disperse nearly $580 million to top execs like Corbat. The money goes on top of previously announced annual salaries and bonuses, and is designed to retain “key” employees.
The note in the filing comes off as a bit of a hard sell aimed at investors, even though the bank said that future payouts will be more in line with performance. The hope being that shareholders won’t again reject executive pay plans in a non-binding vote.
Former Citi CEO Vikram Pandit was left with egg on his face last year when shareholders voted down his $14.9 million pay package for 2011. He resigned from his post under board pressure just months later.
Outflow of Disgruntled Commodity Traders (eFinancialCareers)
With large banks cutting commodities trading operations, top performing traders are finding jobs at hedge funds and other trading houses. But they face big culture changes at their new employers.
No Changing of the Guard (Bloomberg)
J.P. Morgan’s Jamie Dimon should retain his role as CEO and chairman, according to the board.
Iceland Indictments (WSJ)
Fifteen ex-bankers, including two former chief executives, have been charged with stock price manipulation and securities fraud leading up to the financial crisis.
Go Big or Go Home (WSJ)
If you want to be a trader at SAC Capital, get ready to bet big and add new positions at hyper-speed. The scandal-plagued firm invested $5 million or more in a single company in a single quarter – either by adding a new position or quadrupling a current one – more than 5,300 times over the last six years. No other firm is close.
Healthy Pay Package (Seeking Alpha)
MetLife Chief Executive Steven Kandarian received a pay package of $13.7 million for 2012, up 29% from the previous year when he held the role for the final eight months. Kandarian’s crowning achievement was selling the firm’s banking operations, allowing MetLife to avoid the regulations held over a U.S. bank.
One Big Cap (eFinancialCareers)
Bankers may soon have some company. The European Union is inching toward establishing bonus caps for asset managers and hedge funds.
Pay Changes (Financial News)
Credit Suisse has announced new bonus caps for its executive board, which includes Chief Executive Brady Dougan, among other pay structure changes.
Buzz Around the Office
They Should Have Paid with Miles (The Weekly Standard)
Joe Biden and his entourage spent a few nights in London in February. They racked up a hotel bill of $459,388.65. It’s the extra 65 cents that kills you.
List of the Day: Career Dating
Most people spend more time with their co-workers than their spouse. It makes sense then to treat your job search as if you’re looking for that special someone.
- Before getting involved, know what you want in a partner.
- Make dating (networking) a priority.
- Don’t bad mouth your ex.
(Source: AOL Jobs)