Monday, 29 December 2014
Last updated 37 min ago
Aug 3 2009 | 2:01pm ET
The head of Citigroup’s hugely profitable proprietary commodity-trading desk, his $100 million bonus in doubt, wants out.
Andrew Hall, the head of Phibro, is pushing for “a quiet divorce” from Citigroup, The New York Times reports. Hall is reportedly worried about becoming the poster-boy for irresponsible bonus-giving on Wall Street. The $100 million bonus is guaranteed in Hall’s contract with Citi.
What’s more, Hall has already had talks with another possible employer, despite the fact that Citigroup, which needed tens of billions in government bailout money to stay afloat, is confident that the U.S. Treasury Dept.’s pay czar will approve Hall’s massive payout.
“We’re confident in the value these types of profit-sharing arrangements bring to the company and its shareholders, as they directly align compensation with performance,” James Forese, co-head of global markets at Citi, told the Times. Phibro has netted the firm some $2 billion over the past five years.
The Times report is not the first of trouble in the Citi-Phibro relationship. In April, it emerged that the firm was considering a spin-off of Phibro as an independent hedge fund or opening it up to outside investors.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.