More Proof that the Compensation System is out of Whack
Charles O. Prince 111, the ousted head of beleaguered Citigroup and, by most measures, a poorly performing chief executive officer, is yet one more failed CEO walking away with a gold-plated goodbye present. Here’s what the New York Times has to say:
Mr. Prince, arguably the person most responsible for Citigroup’s enormous problems, can expect at least a $12.5 million cash bonus, compared with last year’s cash payout of $13.8 million.
And as he awaits his official retirement next month, Mr. Prince can rest assured that he will leave with $68 million, including his salary and accumulated stockholdings; a $1.7 million pension; an office, car and driver for up to five years — all in addition to the bonus. That is on top of $53.1 million he has taken home in the last four years, a period when $64 billion in the company’s market value has evaporated
The subprime mess that is roiling Citigroup happened on his watch. The rest of the company isn’t doing too well, either. Billions in shareholder wealth has vaporized. And he gets rewarded with riches beyond the imagination of most hard working people.
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