CHICAGO: Citigroup Inc says two of its traders are exempt from a government review of the bank’s top executive pay packages, The New York Times reported on Saturday.
The report said Citigroup submitted to the government on Friday documentation on compensation for its 25 senior executives and highest-paid employees.
It cited “people involved in that process” as saying Citigroup told the US Treasury Department that energy trader Andrew J. Hall, with a pay package of US$98mil, and a second unidentified trader who was paid more than US$30mil, were exempt from review.
A source close to the bank told Reuters on Wednesday that Hall’s contract will be exempt from review because it was signed before a cut-off date of Feb 11, 2009.
But another source said federal pay czar Kenneth Feinberg, the US official responsible for setting pay for top executives at finance firms that received billions of dollars in government aid, would have flexibility in applying his authority on a case-by-case basis.
Feinberg would take his time and conduct his work in private, a spokesman said on Friday.
Feinberg has been consulting with seven companies that have yet to pay back money borrowed from the government, including Citigroup, American International Group Inc, Bank of America Corp, Chrysler Financial, Chrysler Group LLC, General Motors Co and GMAC Inc, a Treasury spokesman has said. — Reuters
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