What will Citigroup do about executive bonuses?

This would appear to be a no-brainer. After four straight quarters of massive losses, the elimination of 53,000 jobs, the unsuccessful and embarrassing attempt to buy Wachovia, and the spurning of Goldman Sachs, you would think Citi CEO Vikram Pandit would be firmly in favor of foregoing exec bonuses for 2008. By even keeping this as an option, he has stumbled into yet another PR mistake. The bank's desire to forego a decision on exec bonuses until the new year now has the New York AG Andrew Cuomo issuing press releases stating that "it seems only fair that top executives should shoulder their fair share in these difficult economic times. It would send exactly the wrong message for Citigroup's top brass to collect bonuses while investors, taxpayers and, now, Citigroup's own employees suffer." To be fair, the AG also mentions AIG. If UBS and Goldman execs deem that their execs do not deserve 2008 bonuses--and Goldman may end the year profitable--it would be hard to argue that Citi execs deserve them.

For more:
- here's the Cuomo statement

Related Articles:
What to make of bonuses at top banks
As securities industry drowns, bonuses remain unsinkable
Goldman, Morgan delay decisions on bonuses