Sub-prime hits DIFC event as ex-Citi chief bails

Charles Prince, the latest casualty of the US subprime carnage, will not be appearing at next week's DIFC week, sources at Dubai International Finance Centre confirmed today.

The former CEO and Chairman of beleaguered US bank, Citigroup Inc., Prince was due to give the keynote address at Dubai's largest financial event, which commences this weekend.

Prince was also the most eagerly-anticipated speaker on an exclusive poll conducted by ArabianBusiness.com on their dedicated site to DIFC week at http://www.arabianbusiness.com/difc-week-2007.

Mr. Prince was just one of the high-profile CEOs to become embroiled in the US subprime controversy that has rocked Wall Street in recent months. His departure came after Citigroup Inc. announced third-quarter losses ranging between $8 billion to $11 billion in relation to high risk mortgages in the US.

Under pressure from shareholders and his board, Prince left Citi last week with a benefits package valued at $29.5 million. The package includes deferred stock valued at $16.05 million, restricted stock awards valued at $10.72 million, retirement savings valued at $ 1.43 million and in-the-money options valued at $1.28 million.

His departure comes barely a month after Merrill Lynch CEO, Stanley O'Neal was resigned from his post with a $160 million "golden parachute."

DIFC week runs from November 17 to November 23 and includes presentations from Larry Summers, Steven Levitt and Jeffery Sachs. (http://www.arabianbusiness.com/difc-week-2007)

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USER COMMENTS (2 COMMENTS)

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JOB PERFORMANCE INCENTIVES.
Posted by Bhatia Madhulal Teckchand, Dubai, U.A.E. on Thursday 15 November 2007 at 17:00 UAE time


Excellent. I fully support it.

Job Performance Incentive...obviously NOT
Posted by T Crowe Semler, Riyadh, Saudi Arabia on Tuesday 13 November 2007 at 23:00 UAE time

Ceo / Management contracts with high valued severance packages should also include disclaimers stating if X amount of dollars are lost while you hold your position all exit / severance packages are null and void. It is an absolute travesty that these high salaried executives can walk off with vast amounts of capital after loosing vast amounts of capital for the company they are entrusted to run. There is NO incentive for these individuals to perform..."The Club" for these individuals is growing while the shareholders take "the hit". It becomes obvious that "The Club" member write the rules which are focused on their "golden parachute" while very one else goes down with the plane.

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