The Wall Street Journal describes some concerning our illustrious Treasury Secretary nominee.
The terms of Mr Lew’s original employment contract with Citi included a bonus guarantee if he left the bank for a “high level position with the United States government or regulatory body.”
Most companies include incentives for top employees not to leave, but in this case the contract was written to reward Mr Lew for treating the bank like a revolving door.
…former Treasury Secretary Robert Rubin, who was paid more than $115 million while encouraging the risk-taking that would have destroyed Citi if not for a taxpayer rescue.
Mr Rubin was Mr Lew’s patron at the bank. Mr Lew’s contract suggests that Citi knew from the start that Mr Lew was headed back to a powerful job in Washington, and that it wanted him to remember the bank fondly when he left.