The U.S. Federal Deposit Insurance Corp (FDIC) is challenging positive conclusions given to Citigroup Inc.'s (C) management in a government-requisitioned review. Some FDIC officials are suspicious about the report, following the interviews of Citi's management who rated the effectiveness of their colleagues. Uncertainty surrounding the integrity of the report may lead the FDIC to assign the report little weight during the next regulatory assessment of the company’s management. The review was conducted this summer for Citi's board by recruiting and consulting firm Egon Zehnder International. It was triggered by the government's stress tests on top banks. Companies found to be in need of additional capital were required to conduct assessments of their management and report the findings to federal regulators. The FDIC, which had concerns about the qualifications of Chief Executive Vikram Pandit and his top management team, required Citigroup to hire an outside firm ...

The management team of Citigroup Inc. (C) received a positive review in an outside appraisal but some shuffling of senior executives could be on the anvil. The review was conducted this summer for Citi's board by recruiting and consulting firm Egon Zehnder International. It was triggered by the government's stress tests on top banks. Companies found to be in need of additional capital were required to conduct assessments of their management and report the findings to federal regulators. The Federal Deposit Insurance Corp. (FDIC), which had concerns about the qualifications of Chief Executive Vikram Pandit and his top management team, required Citigroup to hire an outside firm to perform the review. The report, delivered to Citigroup's board on last Friday, gave strong overall marks to Citigroup's management team and to CEO Vikram Pandit in particular. The review, however, gave less-favorable reckonings to at least two ...

Citigroup Inc. (C) Chief Executive Officer Vikram Pandit and Chairman Winfried Bischoff will forgo 2008 bonuses after the bank lost three-quarters of its market value and got a $45 billion U.S. bailout, Pandit said in a memo to employees.

Robert E. Rubin, the former U.S. Treasury secretary who serves as an adviser to the New York-based company, declined a bonus for a second straight year, said the memo sent to Bloomberg News by Citigroup spokesman Michael Hanretta. According to Bloomberg, senior leadership committee members will get smaller awards than last year.

“The harsh realities of 2008, primarily our earnings results, mean that our bonus pool is dramatically lower,” Pandit said in the memo.

Year-end bonuses, which typically account for about two-thirds of Wall Street compensation, are being cut this year after the U.S. government rolled out a

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Last December, CITI (C) CEO Charles Prince admitted his frustration with the lack of movement in the bank’s share price and defended his strategy of organic growth and targeted international acquisitions. Public dissatisfaction from shareholders including the bank’s largest investor, Saudi Arabia’s Prince Alwaleed bin Talal, to improve the bank’s performance had many speculating Prince would soon be “free to pursue other opportunities”.

In July, Citi created unit to search the market for potential targets after striking several deals in Europe and elsewhere in recent months to reduce its dependence on the US consumer business.