Citi (C) has been saying for the longest time that its TARP obligations will hurt its retention and recruitment efforts. No one doubts that's true, though there are other reasons why someone might not want to work there. But the bank seems to have come up with a partial solution, if employees think CEO Vikram Pandit can get the stock moving north anyway.

The company, per a plan announced in June, will extend massive amounts of options with a strike just north of where the stock now trades. The recipients will be 75,000 Citigroup employees; the 100 highest-ranking executives and other top earners will be excluded. Employees will get one option per unvested share.

According to the New York Times, the bank could issue 200 million to 300 million stock options, worth an estimated $1.1 billion at today's prices. The options will become exercisable over the next three years, The stock is low, so there may be many willing to stick around. There may be some critics, as the bank has been boosting salaries as well. Kenneth Feinberg and the Fed may also take a look. 

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