Citi chief agrees $100m bonus was excessive

18 September 2009

The chief executive of banking giant Citigroup has admitted that the $100 million bonus paid to one of its traders was too much for one year's work, particularly given the overall performance of the company.

Andrew Hall, who was born in the UK, helped to generate substantial returns for the finance organisation as head of its Phibro energy trading division, but Vikram Pandit told an audience in New York this week the payout was excessive in light of Citi's problems.

Last year, the bank was forced to turn to the US government for $45 billion of aid in order to survive after being hit hard by the global financial crisis.

The state does have powers to reduce the amount of money paid in compensation deals but it may not be able to take action in this case given that Mr Hall's contract was signed ahead of the February 11th cut-off date.

Earlier this month, it was announced that Mr Pandit has ceased using his corporate jet for private use.

Written by Claire Archer

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