The statement passed by Mr. Pandit came as a reply to a question asked to him at the 92nd Street Y in New York Thursday night. The question related to Andrew Hall, the star Citigroup commodities trader, who received $98.9 million in 2008.
For Citigroup, Mr. Hall's compensation has become a political minefield; and Mr. Pandit specified that company is moving forward with restructuring Phibro LLC, the trading operation led by Mr. Hall.
The sources 'in the know' of the situation said: "Citigroup is considering a spin-off of Phibro so that the trader no longer is subject to pay restrictions and government scrutiny triggered by taxpayer-funded aid."
Mr. Pandit, who said that Citigroup employees need to be paid competitively, replied in the affirmative when asked if $100 million in annual compensation is excessive. His response gave rise to some whispers among the audience, which included Citigroup employees.
Kenneth Feinberg, Citigroup had specified in its submission to the Obama administration's pay czar that since Mr. Hall's contract was signed prior to a deadline specified by Congress, it is exempt from Mr. Feinberg's jurisdiction.
Mr. Feinberg would be asked to push the bank to try to renegotiate the contract with Mr. Hall, if he agrees.
Sunday 20 September 2009
Pandit comments on Andrew Hall’s $100 million annual compensation in 2008
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