To: U.S. Citi employees
From: Paul McKinnon, Head of Human Resources
Date: December 1, 2008
Subject: Amendment to the U.S. Separation Pay Plan
As you know, we’ve continued to review our policies and practices to
ensure that they support our overall business objectives and remain
competitive with industry standards. As a result, a decision has been
made to amend the Citigroup Separation Pay Plan (SPP) for U.S.
employees.
Effective January 15, 2009, the SPP will be amended to eliminate the
supplemental severance payment that provides additional weeks of base
pay to employees who had 10 or more years of service.
The basic severance benefit available to eligible employees – 2 weeks of base pay for each full 12 months of service to a maximum of 52 weeks of base
pay – remains unchanged. In addition, the minimum severance benefits and
COBRA subsidy currently provided by the SPP will continue to be
available.
This amendment will apply to eligible employees who receive written
notice of termination of employment on or after January 15, 2009. As
always, Citi reserves the right to amend its plans at any time.
If you have any questions, please contact your Human Resources
representative.
*Essentially
great…so we already get no bonus, no severance and now whats next? base pay cut in half? thanks so much vikram…
Will that ‘basic severance benefit’ also apply to the executive officers and directors?
Or will they receive an enhanced benefit that includes $millions plus use of an office, the company plane, club memberships, healthcare and a retirement plan?
I mean, according to Bob Rubin, management is not to blame for any of this and deserves to be paid a lot because, after all, they could have taken other lucrative jobs.
Mass lay-offs “on or after January 15, 2009″?
shiti
@ 3:
50,000 wasn’t enough? isn’t bankruptcy basically the only option left? besides throwing Virkam from the top floor?
Can’t even punch Viki in the face at the company gym because the prick supposedly has been told not to go there!
Severance policies are made for good times not for bad. Whoever quoted mass layoffs on or after 1/15 is absolutely right and just before the 1/31 bonus date.
@6:
If you were CEO and your employees were using violent threats, would you go to the company gym? I don’t think so.
Maybe you should Barack this situation, and agree with meet with VP without preconditions. Supposedly, that’s the new way to achieve things…