Citigroup plans job cuts in UK, India; awards CEO with $26.7 million shares and 3 million options
By Our Corporate Bureau | 25 Jan 2008
Mumbai: Citigroup Inc, which has reported a record $9.83 billion quarterly loss a week ago, is planning to cut nearly 400 jobs employees in its UK investment banking business, which it might soon follow with job cuts at other places including India.
Citigroup, the world's largest bank, also awarded chief executive Vikram Pandit $26.7 million of shares and 3 million stock options.
In a filing with the US Securities and Exchange Commission, Citigroup said Pandit was awarded 1,094,949 shares under a company incentive plan adopted in 1999. It said Pandit also received options to buy 3 million shares - 1 million shares at $24.40 each, 1 million at $30.50 each and 1 million at $36.60 each.
These awards will be given in four annual installments. The stock award constitutes Pandit's first direct stake in Citigroup shares, the filing shows. Citigroup acquired his Old Lane Partners LP hedge fund firm last year for about $800 million.
Citigroup also awarded stock, options or both to more than two dozen other senior executives and directors, other SEC filings show.
Citigroup is planning to cut about 400 of its investment banking staff in the UK as part of the US bank's plan to reduce the headcount by 4,200 globally, the Financial Times reported.
The remaining 3,800 of Citi's proposed cuts are likely to fall in its US consumer finance business, as well as in Asia and India, the report added.