In an unexpected, albeit late response, Citi Bank has announced that it would no longer honor the severance pay of a number of top executives. The story, which broke on June 2nd, states that 5 top executives would not receive millions promised to them in severance pay. The bank, which is going through a restructuring, is paying out the money to former employees to fulfill contracts that had been drawn up before the recession.
However, while the bank has halted these recent payments, it still has handed out nearly 50 million of the 100 million dollars that had been promised to executives in this year. While other employees are struggling to get by after being laid off with no benefits or severance, these few executives who oversaw these companies are walking away with millions to show. The article sites that the company withdrew the bonuses to avoid public backlash, but this move may just highlight the money that the banking industry has given to those at the top, while stranding their customers and employees.