NEW YORK (Reuters) - Former Citigroup Inc (C.N) CEO Sanford “Sandy” Weill is giving up millions of dollars of perks as the bank that he helped to build tries to stanch massive losses and weather the credit crunch.
Weill is ending a 10-year consulting agreement after just three years, following $28.5 billion of net losses at Citigroup over the last 15 months.
He remains one of the bank’s largest individual shareholders.
Citigroup has accepted $45 billion of taxpayer money in the last four months, as well as a government agreement to limit losses on $301 billion of troubled assets.
Citigroup spokeswoman Shannon Bell said Weill voluntarily asked last August to end the agreement, which gave him access to bank facilities and services comparable to what he had as chairman and chief executive.
The bank and Weill “mutually agreed” to end the benefits in April, she said.
Weill, who turns 76 in March, did not immediately return a request for comment. The New York Post earlier reported the end of the consulting agreement.
Citigroup Chief Executive Vikram Pandit is abandoning Weill’s “financial supermarket” model, putting businesses he plans to keep into an entity called Citicorp and dumping the troubled assets and other businesses into a separate entity.
Weill’s Travelers Group Inc bought Citicorp in 1998, creating Citigroup.
Weill’s consulting agreement allowed him to earn as much as $173,070 annually for up to 45 days of work, a March 2006 filing with the U.S. Securities and Exchange Commission shows.
He was also entitled to the use of Citigroup aircraft, a car and driver and an office as well as enjoy other perks.
In 2005, his last full year as chairman, Weill got $2.65 million of benefits, including $524,949 for transportation, $302,758 for security, $61,846 for medical and dental insurance premiums, and other items, the SEC filing shows.
He was also entitled to $1.1 million of annual pension benefits, it shows.
Weill stepped down as chairman in April 2006, holding more than 16.5 million shares. Those shares were once worth more than $900 million, but have fallen to less than one-tenth of that amount because Citigroup’s share price has tumbled.
In the next couple of months, the bank is expected to finish eliminating 75,000 jobs, or 20 percent, since the end of 2007.
This week, under political and public pressure, it said it would not accept delivery of a $50 million jet ordered in 2005.
Reporting by Jonathan Stempel; additional reporting by Dan Wilchins; Editing by Ted Kerr