In this new age of cost cutting no contractual obligation, no matter how ancient, is safe from scrutiny. What might have seemed an innocent provision on a severance agreement eight years ago today comes back to haunt firms and subject them to navel gazing by The Safecracker and crew. To wit: Bloomberg's shocking exposé on offices and secretaries that, no doubt, will result in a Congressional investigation by Friday.
Looking for Charles O. "Chuck" Prince, ousted 15 months ago as Citigroup Inc.'s chief executive officer? Just call his extension at the bank, which still pays for his office and secretary in Midtown Manhattan.
Former Citigroup investment-banking head Michael Klein also has a free office and secretary after receiving a $34.3 million exit package when he quit in July 2008. John Reed, 70, who hasn't worked at the bank since he resigned as co-CEO in 2000 with a $5 million parting bonus, is entitled to an office and secretary for as long as he wants.
Oh, the humanity.
Citi Cost-Cutters Skip Offices, Staff for Ex-CEOs Prince, Reed [Bloomberg]