Is this any way to run a business? Citigroup is seeking permission to pay bonuses in stock. According to Reuters, Citigroup executives "are describing these as retention bonuses, but the bank is still considering several options of how to structure any bonuses."

We're not talking about scandalous amounts here. "In one plan, the bonus would be largely stock that vests over some three years and be worth at least half the employee's cumulative pay over the last three years." Citigroup is also looking at ways to retain people in its energy trading unit. My guess is that the government will have to address these thorny pay issues immediately. It really puts a burden on the bank. My sense is that the outrage over the AIG bonuses has passed, but the bank needs to be smart about this; public anger could easily reignite.  

For more:
- here's the Reuters article

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