Citigroup, Inc (NYSE: C) will pay about $30 million during the next three years to deal-maker Stephen Trauber, in a move which suggests that top bankers are again able to make high compensation demands, even at firms which have not fully paid back their taxpayer bailout funds.
Trauber, who is a powerful banker in the energy sector, was hired away from UBS by Citigroup, Inc (NYSE: C) after UBS refused to meet Trauber’s financial demands. He had asked for access to UBS’ corporate jet for 150 hours per year and demanded that the bank setup a fenced bonus pool for him and his team which would have setup large bonuses for his team regardless of the company’s overall profits.
Trauber told Bloomberg News the reason for the departure, “At the end of the day, this was not about the quantity of money, it’s about the assurance of money.”
Trauber is likely to be paid $9 million for his 2010 work, despite only joining the company near the end of the year.
Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.
Shares of Citigroup, Inc (NYSE: C) fell by 0.87% during mid-day trading on Monday.
