NEW YORK — Charles “Chuck” Prince is stepping down as chairman and chief executive of Citigroup Inc. with stock and retirement benefits worth about $60 million, according to regulatory filings.
Citigroup will file a report “soon” with the U.S. Securities and Exchange Commission on Prince’s exit package, company spokesman Michael Hanretta said Monday.
Because he has no employment agreement, Prince may not receive any cash severance, said Brian Foley, a compensation consultant based in White Plains, N.Y. By retiring, Prince will get to keep about 743,640 shares with a market value of about $26.7 million that he might have forfeited upon being fired, Foley said.
Prince was the second Wall Street CEO to retire in a week amid questions about subprime-mortgage losses. Merrill Lynch & Co.’s Stan O’Neal stepped down Oct. 30 and is eligible to receive $161.5 million, mostly in securities and retirement funds.
According to Citigroup’s most recent proxy statement, executives who retire keep shares that are still subject to forfeiture as long as their combined age and years of service at Citigroup total at least 75. Prince is 57 and has been with Citigroup and its predecessors for 29 years.
Prince held 1.61 million company shares as of July 13, the regulatory filings show. He held 743,640 shares that were either deferred or subject to forfeiture as of Feb. 28, according to the company’s proxy statement.
Prince also holds options to buy almost 1.3 million shares, most of which won’t be profitable unless Citigroup’s share price climbs at least 23 percent. The only options Prince holds that can be currently exercised for a gain entitle him to buy 225,000 shares at $32.05 each.
Breakdown
743,640 Shares of Citigroup stock that outgoing chief executive Charles Prince will keep by retiring rather than being fired
$26.7 million Value of the shares
$866,250 Value of 225,000 stock options Prince holds that entitle him to buy shares at $32.05 each
