posted on Feb, 12 2009 @ 04:56 AM
Read the full article here
Feb. 11 (Bloomberg) -- Citigroup Inc. Chief Executive Officer Vikram Pandit said he will take a salary of $1 and no bonus until the bank, which
has accepted $45 billion in government bailout money, returns to profitability.
People are quick to bash bankers and CEOs as elitist thieves who plundered the US taxpayer, after taking excessive risk and unjustly rewarding
themselves with massive bonuses. To a great extent, this criticism is spot on.
However some people also claim that the CEOs took golden eggs before slaying the goose... ie they took as much as they could before plunging the
company off a cliff deliberately. I disagree with this, and I believe they made a genuine error; no doubt exacerbated by Greenspan and Clinton's
pushing of CDOs and sub-prime respectively.
Vikram Pandit, the CEO of Citigroup has agreed to work for the next 3 year at a rate of $1 a year, with no bonus. In other words, he's working for
free to try and rectify his mistake. It would be far easier for him to simply walk away and enjoy his life, would it not? If that were his motive, he
would have just moved to the Bahamas already.
As I've said through this crisis, its the industry that was corrupt and defunct; not the executives.