CITIGROUP APPEASES THE PROLETARIAT

Like Goldman, UBS and Deutsche Bank, Citigroup has decided its MOTU don't really need to get all the money they've become accustomed to.

Citigroup limits top executive pay, bonuses
Dec 31 07:20 PM US/Eastern
By IEVA M. AUGSTUMS
AP Business Writer

Under pressure from lawmakers, Citigroup Chief Executive Vikram Pandit and Chairman Win Bischoff opted to forego their 2008 bonuses. The company's new executive pay limits also feature a clawback provision in which Citigroup can recoup executive pay "that over time proves to be based on inaccurate financial or other information."

The compensation restrictions come as the New York-based bank signed an agreement with the federal government to receive an additional $20 billion on top of the $25 billion it received in October. Restrictions on expenses, including the use of corporate aircraft and costs related to entertainment or holiday parties, also will be put in place.

Robert Rubin, a Citigroup adviser and former Treasury secretary, also will decline a bonus.

Pandit added that senior leadership committee members will see their bonuses "substantially reduced," while executive committee members will have larger proportions of their bonuses in deferred compensation than other employees.

Last month, American International Group Inc. said it would be limiting how much it pays its top executives, including granting a $1 salary for 2008 and 2009 to its CEO Edward Liddy.