Citigroup bonuses

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http://online.wsj.com/article/SB124096311194466041.html?mod=googlenews_wsj
 Quote:
Citigroup Inc., soon to be one-third owned by the U.S. government, is asking the Treasury for permission to pay special bonuses to many key employees, according to people familiar with the matter. The request comes as Citigroup is grappling with broad government pay restrictions that could break apart its legendary energy-trading unit. People at that unit, Phibro, are threatening to leave because of pay caps tied to the U.S. bailout of Citigroup. Phibro has been the source of hundreds of millions of dollars in profits for the bank, and has paid out hefty compensation, including a roughly $100 million windfall last year for the unit's leader, Andrew Hall.
 Quote:
The Treasury is poised next month to become Citigroup's largest shareholder, owning as much as 36% of its common stock
 Quote:
Citigroup executives say they are worried that employees, who have seen much of their past bonuses wiped out by the collapse of Citigroup's share price, will jump to U.S. and foreign financial institutions that aren't tethered by federal pay restrictions.
 
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Let them leave...and have fun finding another job. There's no shortage of talent that would be happy to come in and take their places. BUH BYE.
 
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Easy solution. Break this group out as a separate company 100% owned by Citigroup. Then in the worst case, it could be used as a collateral for loan or sold for cash.
 
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 Originally Posted By: Tempest
 Quote:
Citigroup executives say they are worried that employees, who have seen much of their past bonuses wiped out by the collapse of Citigroup's share price, will jump to U.S. and foreign financial institutions that aren't tethered by federal pay restrictions.
Sarcasm on/ A good Communist needs to keep in mind that a group is more important than individuals. People only exist to serve the state. /Sarcasm off
 

Tempest

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 Originally Posted By: ViragoBry
Let them leave...and have fun finding another job. There's no shortage of talent that would be happy to come in and take their places. BUH BYE.
These people are making money in this environment. Yes, I think they would have plenty of employment options. And who would want to work for a salary capped, government owned corporation?
 
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So you are against bailing out Citi but are for giving their employees bonuses funded by the taxpayer? I think your logic is a little bit upside-down.
 

Tempest

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These people are making a profit. Do you want profitable people to leave the company that has tens of $billions of our tax dollars "invested"?
 
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The company exists because of the TARP. No TARP would have meant no CitiGroup hence no problem of some people having their pay capped. They took the money so now have to work within the rules. If they don't like it, they are welcome to give all the money back and then go and give as much bonuses as they want.
 
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China turns out 100,000 engineers a year. They are taught by Engineers we trained here in the USA. India turns out 80,000 engineers a year. They are taught by Engineers we trained here in the USA. The USA turns out about 15,000 engineers a year. The last thing we need is even MORE of a Brain Drain. Much like our manufacturing, all the talent is headed over seas. I work for Citigroup, and my team of 10 has had 2 people layed off. I am not a manager, I am the little guy. I have friends who lost their job at Citi after 10 and 15 years there. They lost their job in November, and are still looking. These guys getting bonuses. They are not getting golden parachutes that they negotiated for years ago. They are asking for pay that IS PART OF THEIR CONTRACTS. Lots of the folks in very profitable divisions do this. Although their quality of life is greater then mine I feel for them. The Government wasting YOUR money and the Government wasting Someone Elses money all the same. It is sad that the Politics have reached this level.
 
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I for one do not want to finance someone's new yacht with my tax monies. They don't like the caps, they can go somewhere else or pay the TARP money back. Ahh, wait, these are the guys who screwed up... and don't have the money.
 
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 Originally Posted By: Tempest
These people are making a profit. Do you want profitable people to leave the company that has tens of $billions of our tax dollars "invested"?
For all of their genius and fine sensible stewardship ..the government still owns XX% of them These types need welfare help with wealth. Yes ..if the world owes them more ..the door marked "EXIT" is not chained. How often would you genuflect in these people's midst?
 
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 Originally Posted By: SuperDave456
... These guys getting bonuses. They are not getting golden parachutes that they negotiated for years ago. They are asking for pay that IS PART OF THEIR CONTRACTS. Lots of the folks in very profitable divisions do this. ...
The key is, they are getting paid for part of their contract, which consists of minimum base salary + bonuses based on their performance and profit that they can bring in for their divisions/company. Citigroup and any other company must honor their contracts with their employees, otherwise they may be sued and they may be liable for larger payouts because of potential penalties.
 

Tempest

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 Quote:
If they don't like it, they are welcome to give all the money back
NO, they are not. The government is not accepting payback of TARP funds from many of the banks. Wonder why that is?? If you drive out the talent from profitable parts of Citi, then you will LOOSE the tax money that has been "invested" for you by our government. You really want Citi to make money if you want your tax money back.
 
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 Originally Posted By: Tempest
 Quote:
If they don't like it, they are welcome to give all the money back
NO, they are not. The government is not accepting payback of TARP funds from many of the banks. Wonder why that is?? If you drive out the talent from profitable parts of Citi, then you will LOOSE the tax money that has been "invested" for you by our government. You really want Citi to make money if you want your tax money back.
Didn't you just say we can't get our money back? Let them LEAVE. Kick the leaching weasels to the curb and let them do it elsewhere. If there's greener pastures to be found ..go and find them. Their talent and worth is highly over compensated. Plenty are waiting for them to "get out of the way" and allow them in the big(ger) chairs. Isn't that what you would tell a UAW worker?
 

JHZR2

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 Originally Posted By: SuperDave456
China turns out 100,000 engineers a year. They are taught by Engineers we trained here in the USA. India turns out 80,000 engineers a year. They are taught by Engineers we trained here in the USA. The USA turns out about 15,000 engineers a year. The last thing we need is even MORE of a Brain Drain. Much like our manufacturing, all the talent is headed over seas. I work for Citigroup, and my team of 10 has had 2 people layed off. I am not a manager, I am the little guy. I have friends who lost their job at Citi after 10 and 15 years there. They lost their job in November, and are still looking. These guys getting bonuses. They are not getting golden parachutes that they negotiated for years ago. They are asking for pay that IS PART OF THEIR CONTRACTS. Lots of the folks in very profitable divisions do this. Although their quality of life is greater then mine I feel for them. The Government wasting YOUR money and the Government wasting Someone Elses money all the same. It is sad that the Politics have reached this level.
It is because of folks like these that (a) the engineers and scientist ratios are what they are (b) that offshoring is so prevalent, and (c) that the average college student goes after some brain-dead major like business, as opposed to a more technical field. Maybe it is not the fault of the energy trader group per se, but it is the notion of fast wealth and "glamorous" positions, as well as the overall business sentiment and stock-market games, that the issues you mentioned are biting us. ...coming from an advance degree chemical engineer who despises most anything...
 
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 Quote:
It is too early to tell whether the decline of total CEO compensation points to a trend or whether it is merely an anomaly in the upward spiral. However, the ratio of CEO pay to employee wages remains exceedingly high: more than 344 times in 2007, according to the 2008 survey by United for a Fair Economy.[12] This compares with 42 times in 1980.[13] Boards of directors are responsible for setting CEO pay. Even though a reasonable and fair compensation system for executives and workers is fundamental to the creation of long-term corporate value, directors often award compensation packages to executives and CEOs that go well beyond what is required to attract and retain them. The result is the proliferation of poorly designed executive compensation packages that reward executives for decisions that are not in the long-term interests of companies, their shareholders, their employees and the wider economy.
Seeing it doesn't seem to change the mentality
 
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 Quote:
They are asking for pay that IS PART OF THEIR CONTRACTS. Lots of the folks in very profitable divisions do this.
You mean like a Bethlehem Steel worker ..or a Delphi worker ..who was given a contract and promised a pension and benefits? (both Bethlehem and Delphi were headed by the same CEO ..who got his)
 
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 Originally Posted By: Tempest
NO, they are not. The government is not accepting payback of TARP funds from many of the banks. Wonder why that is??
Why o why would government accept them back if that means putting these banks into failure again? They are not yet stable. Like I say, spin these division out and let them pay the bonuses, and have these division (now a new company) be collateral or sold to others for cash. Happy ending to everyone, except if you are Citibank and want to keep the cake after you got bailed out. Oops, too bad.
 
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If you are working for a bankrupt company then you shouldn't be expecting a bonus. If you have a problem with that then talk to the people that got the company in trouble in the first place. Sorry but contracts don't mean much. There are a lot of people that thought they had a contract for pensions or whatever and lost it. Let the Citi people join the rest of the working world and maybe they will remember the results of playing fast and loose with money.
 
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