Citigroup's Sale of Phibro: Ending the US$ 100 Million Pay Controversy
|
|
ICMR HOME | Case Studies Collection
To download Citigroup's Sale of Phibro: Ending the US$ 100 Million Pay Controversy case study
(Case Code: BECG108) click on the button below, and select the case from the list of available cases:
OR
Buy With PayPal
|
» Business Ethics Case Studies
» Business Ethics Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
Abstract:
|
The case discusses Citigroup, Inc.'s sale of Phibro LLC, its profitable energy trading unit, to energy and chemicals giant Occidental Petroleum Corp. Citigroup sold the unit reportedly to end the controversy that erupted over the US$ 100 million compensation due to Phibro's star trader Andrew J. Hall.
The case mentions some of the arguments for and against making the payment. It then describes the reasons behind Citigroup's decision to sell the unit, and some of the consequences of the sale on the company and on other companies in the US financial services industry. The case also touches on the possible benefits and threats to Occidental from the Phibro acquisition.
|
|
Issues:
» Understand the role of compensation in motivating employees.
» Understand the impact of government ownership on private enterprise.
» Recognize the ethical issues involved in compensating employees extravagantly, especially during dire financial times.
Contents:
Keywords:
Citigroup, Phibro, Andrew Hall, Executive compensation, Pay review, Financial services
Citigroup's Sale of Phibro: Ending the US$ 100 Million Pay Controversy
- Next Page>>
|
|
