Citigroup Inc., which has taken billions in taxpayers money to stay afloat, plans to spend an estimated $10 million on new offices for Chief Executive Officer Vikram Pandit and his top lieutenants.
Bloomberg News, which broke the story today, said the new space will include 17 private offices, conference rooms and open areas with soft seating, and the installation of at least one Sub-Zero refrigerator.
Citigroup said the project is part of a global space-saving plan that will ultimately save money.
“Senior executives in our corporate headquarters are moving from two floors to smaller, simpler offices on a single floor,” the company said in statement to Bloomberg. “Based on estimates made when the project was initiated, we expect to generate savings in the next few years well in excess of the project costs.”
Pandit, who has been criticized in the past over Citigroup’s use of taxpayers’ money, canceled an order for a $50 million jet in January and subsequently told Congress: “I get the new reality and I’ll make sure Citi gets it as well.”
The bank began planning the renovation last June and obtained demolition permits in September, before the bank received any bailout funds.
The new executive suite will be located on the second floor of Citigroup’s office on 399 Park Avenue, a floor below the one Pandit, 52, inherited when he took over as CEO from Charles Prince in December 2007. The second floor previously contained offices, which are being demolished, as well as boardrooms and executive-dining quarters.
Basic construction is estimated to cost $3.2 million, with architect’s fees and the purchase of furniture expected to triple that pricetag. Plans on file with the city Buildings Department specify the installation of at least one Sub-Zero refrigerator and icemaker in the renovated space, along with “premium grade” millwork and Madico Inc. “Safety Shield 800″ blast-proof window film.
Former Merrill Lynch CEO John Thain was recently lambasted for his $1.2 million office renovation, which was undertaken soon after he arrived at the company in December, 2007.
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