CitiGroup says two exempt from pay review

Citigroup Inc says two of its traders are exempt from a government review of the bank's top executive pay packages, The New York Times reported on Saturday.

The Times said CitiGroup submitted to the government on Friday documentation on compensation for its 25 senior executives and highest-paid employees.

It cited "people involved in that process" who said CitiGroup told the U.S. Treasury Department that energy trader Andrew J. Hall, with a pay package of $98 million, and a second unidentified trader who was paid more than $30 million, were exempt from review.

A source close to the bank told Reuters on Wednesday that Hall's contract will be exempt from review because it was signed before a cut-off date of February 11, 2009.

But another source familiar with the matter said federal pay czar Kenneth Feinberg, the U.S. official responsible for setting pay for top executives at finance firms that received billions of dollars in government aid, will have flexibility in applying his authority on a case-by-case basis.

Feinberg will take his time and conduct his work in private, a spokesman said on Friday.

"We are not going to provide a running commentary on this process," said Treasury spokesman Andrew Williams.

Compensation plans were expected to be submitted by midnight on Friday, and it may take several weeks to see if they are in order. Feinberg then has 60 days to present his recommendations on compensation for the 25 highest-paid employees at companies that must answer to the government on pay.

Feinberg has been consulting with seven companies that have yet to pay back money borrowed from the government, including Citigroup, American International Group Inc, Bank of America Corp, Chrysler Financial, Chrysler Group LLC, General Motors Co and GMAC Inc, a Treasury spokesman has said. link.....