Bischoff nets $10m payout

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Sir Win Bischoff, chairman of Citigroup Europe, is being paid a $10m (€11.1m) package over three years as part of his lock-in agreement with the giant US financial institution, following its acquisition of Schroders last April.

The payout is in addition to the 5m (€8m) payoff from Schroders - a cash bonus to reward him for selling its investment banking business to Citigroup last year.

Speculation that Bischoff, who was formerly chairman of Schroders, is being paid $40m was firmly denied by Citigroup.

However, Bischoff and 100 senior Schroders executives are together being rewarded with a total of just under $250m over the three-year period, which runs out in April 2003.

This includes 17 key corporate financiers who have special arrangements within the agreement. It is also thought to include top bankers such as Will Samuel, David Challen, Panfilo Tarantelli and Robert Swannell.

The Schroders compensation is dwarfed by the packages paid to Citigroup's top executives. Forbes magazine recently estimated that chairman Sandy Weill's pay package over five years was just below $800m, although its shareholders saw an annual return of 33%.

Bischoff said in an interview with Financial News that rewarding talent was one of the key reasons why Schroders was unable to stay independent. 'It's not the clients that you have to look for but the talent. Its rather sad but it's one of the downsides of globalisation. Schroders could not compete with the rewards that the big US houses can offer the really bright people.' But Bischoff also warned of the dangers of long working hours in investment bankers which he said could lead to talent going back into industry.