views

Citigroup to end payouts to its departed executives

CITIGROUP is to halt the severance payments it makes to departed executives, including its former head of investment banking Michael Klein.<br /><br />Senior figures at the Wall Street bank were promised severance packages paid in cash instalments when they parted company with Citigroup last year, including $42m (&pound;25.3m) in cash and stock to be paid to Klein during 2009, on the condition that he did not join a rival.<br /><br />The bank has already paid out $50m of the combined $100m it pledged to pay departing executives but is now planning to end the payments to avoid a public outcry.<br /><br />Citigroup, led by chief executive Vikram Pandit, has received $45bn from the US government&rsquo;s Troubled Asset Relief Programme so far, prompting anger over its use of corporate jets.<br /><br />But sources familiar with the situation said yesterday that the government had not applied any pressure to force the bank to end the payouts.