Question: when are stock grants a huge disappointment to the recipient? Answer: When it replaces a cash bonus. But Wall Street banks have had no choice in the current environment. Citigroup is the latest to join the trend. According to Financial News Online, it is replacing up to 20 percent of the bonus package of its highest paid managing directors with new restricted stock grants that will vest over two years. The highest paid investment bankers are the ones who will receive most of the new restricted stock. This, of course, ties their hands for a few years. And the value of the stock could easily tank. But at least they've got a job. Other banks have opted for a one-year vesting period.  

For more:
- here's the Financial News Online article