Friday, November 09, 2007

Princely Sums

Paying the price of high-risk investment strategies which have left some of Wall Street's biggest names with billions of virtually worthless that resulted in the sub-prime mortgage fiasco are the heads of the US banks . Although , it is a price that any member of the working class would gladly pay .

The former head of Citigroup, who stepped down on Sunday after the bank revealed huge sub-prime related losses, could walk away with up to $95 million (£45 million). Citigroup confirmed Charles Prince would receive $29.5 million in share awards, share options and pension entitlements.
He is entitled to an incentive bonus based on share performance, currently worth about $12 million, and he also owns $53 million worth of Citigroup shares himself. Prince - who was paid $25 million last year - would continue to receive a salary until the end of the year. In addition, he will be entitled to the use of an office and a driver for the next five years or until he finds alternative employment.

Stan O'Neal parted company with Merrill Lynch last month after it disclosed huge financial liabilities stemming from deteriorating US mortgage-backed investments. Mr O'Neal is expected to receive up to $161.5 million in share and retirement benefits.

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