Tags: citi | ceo | offices | millions

Citi: $10 Million CEO Office a Money Saver

By    |   Thursday, 19 Mar 2009 12:55 PM

It looks like AIG isn’t the only company using taxpayer money for questionable means.

Citigroup, which has received $45 billion of government cash, plans to spend about $10 million on new offices for chief executive Vikram Pandit and his lieutenants, Bloomberg reports.

Documents placed at New York’s Department of Buildings show the beleaguered bank plans to shell out at least $3.2 million for basic building costs, including wall removal, plumbing and fire safety.

Add in architect fees and expenses such as furniture, and the total goes up by at least three times, a person familiar with the project told Bloomberg.

“In this environment, it absolutely sends the wrong message,” Charles Elson, director of the University of Delaware’s corporate governance center, tells Bloomberg. “Timing in life is everything.”

Citigroup responds that the new digs will save it money in the long run. In a statement it said that the new offices represent part of a global space-saving policy.

“Senior executives in our corporate headquarters are moving from two floors to smaller, simpler offices on a single floor,” the statement says. “Based on estimates made when the project was initiated, we expect to generate savings in the next few years well in excess of the project costs.”

Meanwhile, Citi’s stock jumped more than 10 percent Thursday morning after it announced that it will convert $27.5 billion in preferred securities to common stock and that it will execute a reverse stock split.

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It looks like AIG isn’t the only company using taxpayer money for questionable means.Citigroup, which has received $45 billion of government cash, plans to spend about $10 million on new offices for chief executive Vikram Pandit and his lieutenants, Bloomberg...
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Thursday, 19 Mar 2009 12:55 PM
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