This is evidence of pure corruption: Citigroup is telling exactly what it's worth to it to have one of its former employees in a high government position. And it's a lot.
Jonathan Weil, Bloomberg - [Jack] Lew’s employment agreement with Citigroup said his “guaranteed
incentive and retention award” wouldn’t be paid if he quit his job, with
limited exceptions. One was if he left Citigroup “as a result of your
acceptance of a full-time high level position with the United States
government or regulatory body.” This applied if he left “prior to the payment
of any incentive and retention award for performance year 2008 or
thereafter.” Such an award wasn’t guaranteed but would be consistent
with the company’s practice, the document said.
provision concerned his stock-based compensation. If Lew left in 2008 or
afterward to accept a high-level U.S. government position, all of his
outstanding equity awards, including restricted stock, would vest
immediately, the document said. Alternatively, Citigroup had the option
of paying Lew the cash
equivalent of any shares he forfeited upon leaving. The terms didn’t
mention other kinds of public-service work, such as a midlevel U.S.
government job, a position in municipal or state government, or working
at a nonprofit organization such as a university.
Lew stood to receive $250,001 to $500,000 worth of accelerated restricted Citigroup stock when he left the company, according to a disclosure report
he filed in January 2009. The same document listed $1.1 million of
“salary and discretionary cash comp” from Citigroup. Lew said at last
week’s hearing that his salary for 2008 was $350,000.