Don't Cut There!
Citigroup has announced plans to cut thousands of jobs and outsource them to India. But guess who is immune? The managing directors.
Under pressure from shareholders, Citigroup is planning to shed thousands of jobs and sharpen its focus on its operations outside North America.
The colossal bank will get most of its growth from its international operations, chief executive Charles O. Prince told thousands of employees in India today, as he wrapped up a tour of Asia.
Mr. Prince's stop in India comes just weeks before Citigroup will announce a broad restructuring plan that could involve the elimination or relocation of as many as 15,000 high-cost jobs from areas including New York, London and Hong Kong, several executives briefed on the matter say. The net job loss could be 10,000 to 12,000, some through attrition.
Citi's consumer operations will be hardest hit, with front line and back office operations affected, they say. The corporate and investment banking businesses may be hard hit, with several thousand jobs lost, they say.
Managers in these units have been asked to review highly paid employees and look for places to cut fat, particularly just below managing director level.
Perhaps this means that the executive suite is next on the chopping block, but one ought not hold one's breath.
By the way, the article indicated that Citigroup planned to save $1 billion with the forthcoming cuts. In 2006, five employees of Citigroup—Charles Prince, Sallie Krawcheck, Robert Rubin, Robert Druckin, and Stephen Volk—took in $78.768 million in cash, stock, options, pension benefits, and use of company aircraft. Surely there are 5 worthy Indian executives who would settle for $1 million in compensation apiece. Voiláa! The shareholders could have their value and save hundreds of jobs at the same time. But how many shareholders will actually read the proxy statement, which is "incorporated by reference" into the annual report? Probably dozens.
Labels: Citigroup, greedheads, outsourcing
Medical News Flash
Here is a news flash for anyone under the delusion that the letters "M.D." after someone's name made them automagically the paragon of medical ethics.
First, a tiny sliver of data reveals that lots of doctors make lots of money from consulting for pharmaceutical companies. Not that money would ever, ever, influence their behavior.
Minnesota [was] the first of a handful of states to pass a law requiring drug makers to disclose payments to doctors. The Minnesota records are a window on the widespread financial ties between pharmaceutical companies and the doctors who prescribe and recommend their products. Patient advocacy groups and many doctors themselves have long complained that drug companies exert undue influence on doctors, but the extent of such payments has been hard to quantify.
The Minnesota records begin in 1997. From then through 2005, drug makers paid more than 5,500 doctors, nurses and other health care workers in the state at least $57 million. Another $40 million went to clinics, research centers and other organizations. More than 20 percent of the state’s licensed physicians received money. The median payment per consultant was $1,000; more than 100 people received more than $100,000.
And we also find that the Federal Food and Drug Administration wants to limit its advisers to get only $50,000 from a company to serve on its advisory committees. (For reference, in 2005, the per capita income in the United States was only $25,036.)
Expert advisers to the government who receive money from a drug or device maker would be barred for the first time from voting on whether to approve that company's products under new rules announced Wednesday for the F.D.A.'s powerful advisory committees.
Indeed, such doctors who receive more than $50,000 from a company or a competitor whose product is being discussed would no longer be allowed to serve on the committees, though those who receive less than that amount in the prior year can join a committee and participate in its discussions.
A "significant number" of the agency's present advisers would be affected by the new policy, said the F.D.A. acting deputy commissioner, Randall W. Lutter, though he would not say how many. The rules are among the first major changes made by Dr. Andrew C. von Eschenbach since he was confirmed as commissioner of food and drugs late last year.
Labels: doctors, drugs, FDA, greedheads
