Citigroup Inc. chief executive Vikram Pandit and chairman Win Bischoff will forgo their 2008 bonuses, Mr. Pandit said in a memo to employees Wednesday.

The year was one during which the company lost three-quarters of its market value.

Former Treasury Secretary Robert Rubin, an adviser to the company, will also not get a bonus. Members of the senior leadership committee are to get smaller bonuses than a year earlier. Payments for the executive committee's members will "be cut even more," Mr. Pandit wrote.

"The harsh realities of 2008, primarily our earnings results, mean that our bonus pool is dramatically lower than last year," he said.

On Wednesday Citi also signed a contract to issue $20 billion of perpetual preferred shares to the Treasury Department under a previous agreement with its regulators.

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