Results tagged “severancepay”

With the latest proof that sometimes poverty can't even pry the Gingerbread Lattes out of peoples hands, it seems that many victims of the economy are just now learning the severity of 10.2% unemployment, as they're beginning to reach the bottom of their severance packages. How did they learn? Well, it turns out that spending as much money as you did when you had a job just doesn't work the same way when you don't have one.

Hey, hey: The Wall Street Journal reports, "Citigroup Inc. has told about five former top executives that it won't pay them tens of millions of dollars in promised severance payouts, according to people familiar with the matter." While Citi has already paid "more than half of the roughly $100 million it promised to the former executives..company officials recently decided not to proceed with the remaining payments, concluding that they wanted to avoid even the possibility of a public backlash over the money." The U.S. government has aided Citigroup with $50 billion. While the former employees' contracts with Citi require the company to pay out the severances, the WSJ explains, "bank officials essentially are wagering that the former executives will conclude that it would be publicly embarrassing for them to file lawsuits against the struggling, taxpayer-backed company seeking the money."