This page has been archived and commenting is disabled.

So Much For The Whole Stock Bonus Theater: Citigroup Employees Can Sell Their Bonus Shares In The Open Market... In APRIL

Tyler Durden's picture




 

More smoke and mirrors for the peasantry, courtesy of Wall Street, this time coming from Citigroup. Remember all that hoopla how banks are making payments in stock almost entirely, and how no Citigroup employee would get more than $100,000 in cash? Well, turns out the stock portion of compensation is just as liquid: it has been revealed that Citigroup employees can sell stock received as part of their bonuses as early as April. Hopefully by then the CNBC watching sheep will have forgotten all about Wall Street's record bonuses year and everyone can get on with their lives.

Dow Jones reports:

One source with knowledge of the situation said bankers would be able to sell the shares on the open market providing shareholders approve the scheme at Citigroup's annual meeting in April.

A source close to Citigroup confirmed that while the cash component of individual bonuses had been capped at $100,000, a large proportion of the remainder of individual awards will be made up of common stock units, which bankers expect to be able to sell following the AGM.

Citigroup declined to comment.

The revelation follows news, first reported by Financial News yesterday, that bankers at Bank of America Merrill Lynch (BAC) will be granted a substantial proportion of the stock component of their bonuses in shares that are due to vest in the short-term - in many cases as early as August.

At this point does anyone not feel like they are taking crazy pills? On one hand we have a Treasury Secretary blatantly refusing to answer any and all questions that disclose that he only worked on behalf of Goldman, and is also saying that he never had a formal recusal, just some flighty verbal agreement with his staff, and on the other we have a banking system that is now generously handing out blue bills left and right to any willing idiot who believes that anything at all has changed on Wall Street, besides the fact that 2009 was the most profitable bonus year for Wall Street's employees, and with this disclosure it appears that all the posturing about bonuses being paid out in stock was total bullshit. Surely this deserves some more histrionics from the president who will read angrily from the teleprompter how Citigroup employees need to hold their bonuses in stock for at least one more day... or else.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 01/27/2010 - 13:31 | 207798 deadhead
deadhead's picture

The Treasury will probably hold our 34% for.......ever.

Wed, 01/27/2010 - 13:36 | 207812 AN0NYM0US
AN0NYM0US's picture

here is the free version of the Bloomberg clip from earlier today where Shiller discusses the prospects for a Double Dip

 

http://media.bloomberg.com/bb/avfile/News/Surveillance/v701s3ciiGZc.mp3

Wed, 01/27/2010 - 13:42 | 207829 Tommy
Tommy's picture

So we just load up on puts a little further out then the employee lock-ups.

Thanks for the heads up 

:^)

 

Wed, 01/27/2010 - 13:51 | 207856 10044
10044's picture

One can only hope C will be a penny come April

Thu, 01/28/2010 - 03:38 | 208883 Rick64
Rick64's picture

Yea that would be poetic justice

Wed, 01/27/2010 - 13:59 | 207873 Anonymous
Anonymous's picture

Here's another kicker...the price where Citi employees can sell in April is already locked in! They have no markey risk.

Wed, 01/27/2010 - 14:03 | 207887 jakeman
jakeman's picture

Well, knock me over with a freakin' feather.

Wed, 01/27/2010 - 14:46 | 207992 Leo Kolivakis
Leo Kolivakis's picture

LOL, sort of like security theater at the airport!

Wed, 01/27/2010 - 15:01 | 208031 Astute Investor
Astute Investor's picture

3-month restrictive stock = long-term incentive???

Wed, 01/27/2010 - 15:22 | 208083 bugs_
bugs_'s picture

All liquidity courtesy of the US Taxpayer.

Wed, 01/27/2010 - 18:25 | 208363 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Citigroup employees can sell stock received as part of their bonuses as early as April.......................and they will.

 

Wed, 01/27/2010 - 23:18 | 208672 Doc Brown
Doc Brown's picture

Information directly from friends of mine

employed at Citi who were informed a week or so

ago of their compensation, unless they did not understand what they were told, I would recheck your

facts including that 100,000 cash number. Even if they could sell stock in the

open market in April why would they sell at the lows? Because

they believe the company is worth zero as an ongoing enterprise plus it's asset liquidation value and the stock price is going to zero?

Sun, 06/05/2011 - 08:19 | 1340897 sun1
sun1's picture

I have to admit that I have never heard about this information I have noticed many new facts for me. Thanks a lot for sharing this useful and attractive information and I will be waiting for other interesting posts from you in the nearest future.keep it up. online car insurance

Do NOT follow this link or you will be banned from the site!