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This excerpt taken from the C DEF 14A filed Mar 20, 2009. Option
Exercises and Stock Vested
The values shown above reflect the market value of Citi stock as
of the vesting dates. These prices ranged from $7.8450 to
$24.2025.
Pension Benefits
Citi’s current general policy on pension plans is that
executives should accrue retirement benefits on the same basis
available to Citi employees
generally under Citi’s broad-based, tax-qualified
retirement plans. This approach reflects Citi’s senior
executive compensation principles, which
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generally provide that most compensation for senior executives
should be based on performance.
Citi has not granted extra years of credited service under any
retirement plan to any of the named executive officers, and none
of the named executive officers are eligible to participate in
supplemental executive retirement plans or have any other
special retirement benefit.
The following describes the Citigroup Pension Plan listed in the
Pension Benefits Table, which is the only pension plan under
which the named executive officers have accrued benefits.
Effective for 2008, the Citigroup 401(k) Plan provides a
matching contribution of 6 percent of eligible pay to
eligible employees, up to
irc annual limits,
and matching contributions to that plan are disclosed in the All
Other Compensation Column of the Summary Compensation Table.
The Citigroup Pension Plan. The purpose of
this broad-based, tax-qualified retirement plan is to provide
retirement income on a tax-deferred basis to all
U.S. employees. Effective December 31, 2006, the
Citigroup Pension Plan was closed to new members, and effective
December 31, 2007, future cash balance plan accruals
ceased. Mr. Pandit and Mr. Crittenden are not eligible
for a benefit under this plan because they joined Citi in 2007.
All other named executive officers were eligible for benefit
accruals under this plan and continue to earn interest credits,
like other participants.
Prior to January 1, 2008, the plan generally provided for a
single cash balance benefit formula for most of the covered
population, including the applicable named executive officers.
This benefit is expressed in the form of a hypothetical account
balance. Benefit credits accrued annually at a rate between
1.5 percent and 6 percent of eligible compensation;
the rate increased with age and service. Interest credits are
applied annually to the prior year’s balance; these credits
are based on the yield on
30-year
Treasury bonds (as published by the Internal
Revenue Service). Employees became eligible to participate in
the Citigroup Pension Plan after one year of service, and
benefits generally vested after three years of service.
Eligible compensation generally includes base salary and wages,
plus shift differential and overtime (including any before-tax
contributions to a 401(k) plan or other benefit plans),
incentive awards paid in cash during such year, including any
amount payable for such year but deferred under a deferred
compensation agreement, commissions paid during such year, any
incentive bonus or commission granted during such year in the
form of restricted stock
and/or stock
options under core
cap, but excluding
compensation payable after termination of employment, sign-on
and retention bonuses, severance pay, cash and non-cash fringe
benefits, reimbursements, tuition benefits, payment for unused
vacation, any amount attributable to the exercise of a stock
option, or attributable to the vesting of, or an 83(b) election
with respect to, an award of restricted stock, moving expenses,
welfare benefits, and payouts of deferred compensation. Annual
eligible compensation was limited by Internal Revenue Service
rules to $225,000 for 2007 (the final year of cash balance
benefit accrual).
The normal form of benefit under the Citigroup Pension Plan is a
joint and survivor annuity for married participants (payable
over the life of the participant and spouse) and a single life
annuity for single participants (payable for the
participant’s life only). Although the normal form of the
benefit is an annuity, the hypothetical account balance is also
payable as a single lump sum, at the election of the
participant. The Citigroup Pension Plan’s normal retirement
age is age 65. All optional forms of benefit under this
formula available to the applicable named executive officers are
actuarially equivalent to the normal form of benefit. Benefits
are eligible for commencement under the plan upon termination of
employment at any age, so there is no separate eligibility for
early retirement.
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This excerpt taken from the C DEF 14A filed Mar 13, 2008. Option Exercises and Stock Vested
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Table of ContentsThis excerpt taken from the C DEF 14A filed Mar 13, 2007. Option Exercises and Stock Vested
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