The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

We must have the wrong jobs

Apr 14, 2008

Citigroup has lost billions of dollars in the subprime mortgage mess. But its executives made sure they were well rewarded anyway.

Although the former chief exec resigned in November as all the bad news came out, he didn’t leave empty-handed. One newspaper reported that Charles Prince had made 110 million dollars in the three years he headed the company. His exit package was worth 30 million dollars in stock, with a pension each year of 1.7 million, and he got an office, an assistant and a car and driver.

The new chief executive, Vikram Pandit, will do nicely as well. He is supposed to get 216 million dollars for last year and this year.

Although Citigroup’s stock price plunged in half, the company still gave out very nice year-end bonuses: a three million-dollar bonus to the finance chief; two million dollars to the chairman and 14 million for the chief financial officer.

With all the bad news, did these execs give back their bonuses after the poor results rolled in? Ha! Ha!

No, in January, Citigroup announced up to 24,000 layoffs – and raised interest rates on consumer loans!

Workers and consumers are paying for this executive greed.