About five former Citigroup executives have been informedthat they will not in fact be receiving the severance packages promised,according to Reuters. The former Citi execs will lose tens of millions inpromised payouts, despite the bank having already paid more than $50 million toother former execs.
Among the executives being shorted their departing pay areformer operations/technology man Kevin Kessinger, and former investment bankco-head Michael Klein. Citigroup has yet to release the specifics of theiradjustments.
Sources close to the bank said Citigroup decided not to goforward with the remaining severance payments in order to avoid a publicbacklash over what could be perceived as excessive payment. The decision,apparently, was made independent of any government mandate.