Andrew Cuomo (D)
NEW YORK (Legal Newsline)-Citigroup should eliminate bonuses for its top executives, New York Attorney General Andrew Cuomo said after the financial services company announced it was cutting an additional 53,000 jobs.
The Democratic attorney general said Citigroup should follow the lead of Goldman Sachs, where seven top executives at the firm, including CEO Lloyd Blankfein, have decided to forgo their bonuses this year.
"Citigroup should follow Goldman Sachs's lead and announce quickly that top executives will not be receiving bonuses this year Cuomo said in a statement.
He added that Citigroup's decision to hold off on making a decision on executive bonuses until next year is a mistake.
"After four consecutive quarterly losses, it seems only fair that top executives should shoulder their fair share of these difficult economic times. It would send exactly the wrong message for Citigroup's top brass to collect bonuses while investors, taxpayers, and now Citigroup's own employees suffer," Cuomo said.
Citigroup said Monday it plans to cut 53,000 jobs in addition to 23,000 layoffs so far this year.
Already, the attorney general is probing executive compensation packages at American International Group. The insurer was saved by the federal government, which gave the company more than $100 billion in loans.
"Citigroup is, of course, not the only company in this situation," Cuomo said. "Other companies like AIG, who have received billions in rescue financing from taxpayers, also need to take a hard look in the mirror when determining the right thing to do on executive bonuses during these very difficult economic times."
From Legal Newsline: Reach reporter Chris Rizo at chrisrizo@legalnewsline.com.