Mass. High Court OKs Citigroup Stock Plan

Law360, New York (February 2, 2009, 12:00 AM EST) -- The Massachusetts Supreme Judicial Court has handed a victory to Citigroup Inc., ruling that the forfeiture provision in one of its employee stock plans did not violate the state's weekly wage act.

In an opinion issued Friday, Massachusetts' highest court ruled that any bonus money placed in the plan was “contingent compensation” and not “wages.”

“Bonus awards under these programs are discretionary, not because they are labeled bonuses, but because the employers are, apparently, under no obligation to award them,” the court said.

It added that...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.