Citigroup (C) may need to raise more money, but Sandy Weill is still rich
Posted by: admin in Stocks Money News
Filed under: Forecasts, Management, Employees, Citigroup Inc. (C)
Citigroup (NYSE: C) may fire as many as 18,000 more people this year. In the second quarter, it is faced with write-offs as high as $8 billion. According to The Times, “Although Citi has raised more than $50 billion in new capital to repair its balance sheet, analysts believe it will need even more new cash to see it through the financial crisis.”
Based on Citi’s current market cap of $90 billion and its stock price, just above $16, raising another $10 billion could push the stock as low as $10.
One of the ironies of this is that the man who created the financial services companies through a series of mergers, Sandy Weill, still sits on the Forbes 400 list with a $1.3 billion net worth. Too bad he can’t send each shareholder a small check.
Weill is an example of why some part of a CEO’s pay should not be held in escrow until a decade after he retires. At least then, they might give some thought to what their actions could cause a few years down the road.
Douglas A. McIntyre is an editor at 247wallst.com.
Permalink | Email this | Comments
Entries (RSS)