Citigroup Conditional Stock Plan Legal: Calif. Judge

Law360, New York (January 22, 2008, 12:00 AM EST) -- A California appellate judge ruled on Friday that a Citigroup compensation plan that allows employees to purchase Citigroup stock at a preferential price with some of their income, but requires them to forfeit that stock if they leave the company within two years, does not violate the state's labor law.

“As a matter of economic reality, employees who elect to participate in the plan's stock-purchase program are paid all the wages they designate to invest in company stock,” wrote Judge P.J. Perluss of the Court of...
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