Citi to overhaul management bonuses

Written by Reuters | New York, June 30: | Updated: Jun 30 2008, 17:03pm hrs
Citigroup is planning to overhaul its bonus system for hundreds of top managers, a source familiar with the situation said, confirming a report in the Financial Times.

The Financial Timesreported on its website on Sunday that Vikram Pandit, chief executive, wanted to change the way bonuses were calculated to reward co-operation across different divisions and the performance of the company as a whole.

The move is part of an ambitious plan by Pandit to restore Citi's fortunes by harnessing synergies between its investment banking, commercial banking and wealth management divisions, the paper said.

Pandit is working to cut costs after the bank lost more than $15 billion in the last two quarters.