Citigroup cuts executive bonuses

Jan. 2, 2009 at 12:31 PM

NEW YORK, Jan. 2 (UPI) -- Citigroup Inc. said it sharply trimmed its executive bonuses for 2008 in keeping with agreements made when it accepted $45 billion from the U.S. government.

The firm's top executives, including Chief Executive Officer Vikram Pandit and Chairman Win Bischoff would receive no bonus, the company said.

Citigroup got $45 billion from the government's $700 billion financial firm bailout, more than most of its rivals, The Wall Street Journal reported Friday.

The terms require Citigroup to award at least 60 percent of its 2008 bonuses in the form of deferred stock or cash, the Journal said. The company has also begun a "clawback" provision, which allows it to reclaim bonuses under certain conditions.

In a company memo, Pandit wrote that the "harsh realities of 2008, primarily our earnings results, mean that our bonus pool is dramatically lower than last year."

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