Had dinner with a few Citi friends (VP’s and associates) this weekend and the story is as follows. Apparently Citi will tell the public they paid a significant portion of the compensation in stock (~20-30% in cash and the rest stock) and not cash.
The reality is that 70-80% of it will be in cash or stock with very short vesting (April 2010). They expect so many employees to be selling stock that they are analyzing having someone in the banks provide support for the stock that day in April.
So what the public will hear: Citi pays compensation with 70-80% stock component.
Reality:
* Citi pays 20-30% in cash
* 40-50% in stock that vests in 2 months
* 20-30% in typical long term deferred stock
Did not get a sense of absolute levels but everyone at the dinner was happy.
Have to tell hat Prince Ponyriding of Saudis
Why are these people so concerned with vesting? Do they not like sleeves?
@2 you slay me.
-vickles
are they hiring?
-morgan guy who went ape shit over bonuses last week and threatened to quit
Today, I will be announcing a new 90% tax on short-vesting (one year or less) stock grants.
In my upcoming address to the nation, I will outline my "plans" to fuck you until the people love me again.
- Soetoro
That is an incredible story. Pulitzer Prize material.
@6 pretty sure the author wasn't expecting you to be wowed by it, but was simply passing on the info, as it falls under the standard bonus watch umbrella. douche.
I agree with the statement.
Yeah, brilliant play. Bet this goes over the head of main street and the press – they are sooooo smart at Citi. Did your friends who will soon be more "liquid" offer to pay for your dinner? Must have been a slamin' dinner party!
@6 that is an incredible comment. pulitzer prize material.
Ain't no shame in that party bruh it was bammin, citi fools got huge meat okay? Much respect man to man, no homo. HOLLAAAAAAAA!
@6: I had a DVD in one of my offices titled, "Pull It Surprise". Are you referring to that?
~Gundo
@4 – were they shaking in their boots at the notion that you might quit? That's quite a threat – good for you, chuckles.
Dinner was great, we ended up getting bottle service at a nightclub.
Smart friends you have.
Of course, if the big C goes chap 7 or 11 by march, they'd be better off with a free dildo with vikula's sig on it
@16 hell yes!
-j gundlach
@14 Attn Citigroup Groupie
A bucket of Bud Lights at Black Bear Lodge does not count as "bottle service at a nightclub"
So, I should short C?
Seriously, how many shares could they possibly be getting? And, how will they influence the what, 40bn shares already outstanding?
Sheesh, non-news.
Getting hundreds of thousands of shares from your employer is the new killin' it!
No one at C is happy with bonuses
@18 – it was whiskey river…get your facts straight
@18 What about Rolling Rock?
Is this deferred stock typically have a lock up, or do you get to take it with you if you leave?
Only people who would be happy at Citi are Class of 08 associates, because they at least got more than their stubs. Everyone else got hosed.
When is payout date set for less than fortunate ?
Today in DJFN, "Citigroup Bankers Can Sell Bonus Shares April-Source"
http://online.wsj.com/article/BT-CO-20100127-7119...
@27 nice. "Bankers at Citigroup (C) are likely to be able to sell the stock they received as part of their bonuses as early as April, according to sources familiar with the matter, making the awards almost as liquid as cash handouts. "
sources familiar w the matter = dealbreaker