Bankers at Citigroup Inc. are likely to be able to sell the stock they received as part of their bonuses as early as April, according to sources familiar with the matter, making the awards almost as liquid as cash handouts.
One source with knowledge of the situation said bankers would be able to sell the shares on the open market if shareholders approve the scheme at Citigroup's annual meeting in April.
A source close to Citigroup confirmed that, though the cash component of individual bonuses had been capped at $100,000, a large proportion of the remainder of individual awards would be made up of common stock units.
Citigroup declined to comment.
The news came after a Financial News report this week that executives at Bank of America Merrill Lynch will be granted a substantial proportion of the stock component of their bonuses in shares that are to vest in a short period — in many cases, as early as August.