Citigroup, which is under pressure from the Obama administration to reduce executive compensation, may try to persuade energy trader Andrew Hall to accept stock instead of cash in 2010 after paying him about $100 million last year, reported Bloomberg. However, Hall is not likely to accept such an offer because his pay is based on the performance of the Phibro unit he heads, not the bank’s, making the sale of the business more likely as a way of placing him outside the government restrictions, sources said. Citigroup, which lost $27.7 billion in 2008, booked $667 million in profits from commodities trading that same year, primarily from Phibro. The bank, led by Chief Executive Officer Vikram Pandit, 52, has seen its share price fall 93 percent in New York trading since 2006, closing Aug. 14 at $4.04. Citigroup has considered giving up control of Phibro to outside investors and Warren Buffett is said to have recently made an informal offer to acquire the business, which was rejected.
Citigroup May Change Trader $100M Pay to Stock from Cash
Obama Administration said to be pressuring the bank to find a way around the massive payday.
August 17, 2009