Pay For Performance, Robert Rubin Edition
29 November 2008 at 5:31 pm Peter G. Klein 3 comments
| Peter Klein |
Remember, it’s not how much you pay, but how. Today’s WSJ profile of Robert Rubin provides some interesting numbers. Citigroup losses over the last year: $20 billion. US government bailout money going to Citigroup in the last month: $45 billion. Rubin’s compensation since becoming senior counselor and a director at Citigroup in 1999: $115 million. Naturally, Rubin says Citi’s near bankruptcy has nothing to do with his leadership. Critics say he encouraged the firm to increase its risk taking in 2004 and 2005. Ah well, another former Golden Boy brought down to earth. Thank goodness something positive is coming out of this mess.
Consider this today’s friendly reminder that corporate welfare is a bipartisan scam.
Update: See also Larry Ribstein.
Entry filed under: - Klein -, Bailout / Financial Crisis, Corporate Governance, Public Policy / Political Economy.
Organizations and Markets 
1.
Citigroup e Robert Rubin « De Gustibus Non Est Disputandum | 30 November 2008 at 1:22 am
[…] Citigroup e Robert Rubin Novembro 30, 2008 Posted by claudio in Uncategorized. Tags: crise mundial, Robert Rubin trackback Agora ele diz que não teve nada a ver com o problema. […]
2.
Tobia Mill | 1 December 2008 at 3:31 pm
Citigroup losses over the last year: $20 billion. US government bailout money going to Citigroup in the last month: $45 billion.
That’s a net of $25 billion. If Rubin’s clout helped in any way Citi to secure the Treasury payment, $115 million over 9 years (or $13 million per year) look like an excellent deal for the bank.
3.
Felix Liusky | 12 January 2009 at 3:06 pm
Of Course. I second your opinion. Without Bob, Citigroup won’t get that kinda money. He dig himself into a whole and got himself a lifeline and the entire company is being pull up by you and me. The mortgage thing is systemic not just citigroup. It will hapenned to J.P. Morgan Chase when Alt-A and other types of mortgage re-set and become delinquent. I approved the job Bob Rubin is doing. Look man, $10 million per year after taxes is $5 million per year. thT is not much for a Chair/Director of $1 Trillion Dollar company. You are looking at consolidated accumulated earnigings of his pay… EVERYONE just WANT TO REVENGE AND CHOP SOME HEADS BECAUSE EVERYONE IS OUT OF MONEY AND HAS NO JOB…THAT IS THE BOTTOM LINE. America is going for Broke but with our spirit, it may not be, we were once the most capitalized nation before.
I sincerely HOPE GOD has mercy on us and on citigroup. citigroup’s tentacle reaches and extends the financial life line of businesses and individuals around the world in an atomic scale. I hope citigroup will survive!!! God Bless citigroup and God Bless America!!!