Citi Could Spin Off Oil Trading Unit Phibro
NEW YORK (
) -- Perhaps a pay package of $100 million is a bit much.
That's the sentiment of
Citigroup
(C) - Get Report
CEO Vikram Pandit, who indicated the bank is considering spinning off oil trading unit Phibro as the unit's manager, Andrew Hall, could receive a compensation package of $100 million this year.
Pandit told a New York audience Thursday that Citi wants to reduce its ownership in Phibro and have it manage money from outside investors, the
Financial Times
reports. Phibro currently trades with capital from Citigroup.
Pandit said, "Yes," when asked if a $100 million pay package was excessive for a trader on Wall Street, the
Financial Times
reports.
Hall received $98.9 million in 2008, according to the
Wall Street Journal
. His pay package has become a hot-button issue as compensation for those on Wall Street has been receiving increased scrutiny.
Hall's contract gives him a share of Phibro's yearly profits, He also has provisions to recoup some of the money if the unit loses money, the
Financial Times
adds. Phibro is believed to have booked profits of about $600 million last year.
-- Reported by Joseph Woelfel in New York
.
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