According to Bloomberg, Citigroup said the project will help it save money over time, as part of a space saving measure.
"Senior executives in our corporate headquarters are moving from two floors to smaller, simpler offices on a single floor," the company's statement said. "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."
The project was initiated in June, before the whole global economic meltdown thing really got going.
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 "Chuck" Prince in December 2007. The second floor previously contained offices, which are being demolished, as well as boardrooms and executive-dining quarters.
Plans and instructions for the bank's contractors, on file with the city, specify the installation of at least one Sub-Zero Inc. refrigerator and icemaker in the renovated space, along with "premium grade" millwork and Madico Inc. "Safety Shield 800" blast-proof window film. The project encompasses 17 private offices, each with space for administrative assistants, as well as two conference rooms and open areas with "soft seating," according to the plans.
Should we freak out about this?
Citigroup May Spend $10 Million for Executive Suite (Update1) [Bloomberg]
]]>PUT IT OFF TILL YOU HAVE YOUR OWN GOD DAMN MONEY TO SPEND.
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I have grown so tired of this argument because I just don't believe it at all applies anymore. It would be closing the doors after the animals escape.
If you were top talent that could get a job anywhere, would you have stayed at Citibank when it was faltering? How about when the government took control? What possible reason would you stay with such a dysfunctional failing company other than you couldn't find a similar or better position elsewhere (assuming that even exists - companies can only poach so many people at time, especially in these extraordinary downtime)
Any talent has long ago escaped and as shown by the HUGE FAILING of Citi they didn't have much talent to begin with.
]]>I'm happy to offer them a workable floor plan for pennies on the original budget. Sitting on top of each other with rented office furniture would be the best incentive to get their company straight again.
]]>Soon they will learn, their days of 10 million dollars offices are over.
Assuming each exec has two staff, that works out to about 20 grand per staff member per office.
]]>the media and everyone here is blaming the wrong people .. the federal govt is deflecting blame and putting it on these companies.. we told the govt to let them fail and they didnt represent us, now they want to represent us by sharing our anger at them ? give me a break
this is like a warden giving a machine gun to a deranged killer and expecting the the killer not to do any thing... when the the killer goes ape nuts .. the warden is right there with us blaming the killer for the horrible deaths..
like the one person said before, this is all media propagating things to you from a higher power and everyone here eating it up.. if youre really pissed off about these things..
call up your congressman and tell them no more bailouts and you ll see that we wont have these kind of problems until then quit complaining, get over it, and move on
]]>The government foolishly and hastily gave money to the bank. I prefer that they spend it this way vs. it going back to the government to be mishandled again.
]]>They did say they would survive, didn't they?
]]>This is just further proof that the media is engaged in a populist fueled with hunt to try to get people as hysterical as possible.
This "hate the corporations" populism has gotten out of hand. Don't even try to explain it away with "well they are using tax money" - over 50% of the population pays no taxes and of those that do, every single one of them has received a bail out ("free" money from the government of some sort).
Subsidized student loans? Government bailout.
Mortgage tax write off? Government bailout.
People have a right to act hysterical once they are paying taxes and not receiving their own bailouts. The number of people doing both is a grand total of 0.
]]>"The project was initiated in June, before the whole global economic meltdown thing really got going."
What bank on this good green earth downsizes their executive offices when things are going good?
This is the proof that they knew the perfect storm was heading their way.
]]>Now I work for a company in a different industry that makes us fly coach exclusively even if you're going to India. And our chairs are literally falling apart. When the microwave broke, we got a donation from an employee.
]]>Really who cares. Everybody talks about wanting to "stimulate" the economy, well news flash, they're paying that $10 million out to somebody to get the furniture and do the work...
Ironically enough it will probably provide more economic stimulus than anything .gov is doing right now...
]]>@Oranges w/ Cheese: Repercussions like the fairly high yield dividend these companies are paying the government every quarter for the TARP loan?
]]>@Wormfather is Wormfather: This is the only reasonable reply I've read about the situation. If anything, score one for the beltway PR machine. They've got everyone convinced this is free money, wellfare, and a bailout when it is anything but.
]]>Execs living like kings (gold bathrooms, people to wipe your butt, caviar flown in daily, etc) during boom times is something regular folks dislike but tolerate.
Execs continuing to live like kings after they have basically forced bailout money from regular folks for the execs own stupidity: well that's when people tend to lose their cool a little.
]]>Citi doesn't really need painted walls or carpet, do they?
]]>It is so annoying how all of the media and the slimy politicians (and Consumerist) are all of sudden trying to vilify everything the financial industry does as extravagance.
Oh really? Who were all the idiots taking out the ill-advised loans??? People like you and me.
Who are the idiots who came up with the "Stimulus" package??? The retards in congress and the White House.
There is plenty of blame to share for the mess this ecoonomy is in, and I'm getting tired of hearing about how messed up companies like Citi and AIG are while we continue to throw BILLIONS at them.
Here's an idea: let's quit bailing people out and we won't have to worry if they make a dumb decision with their money because they'll go out of business.
]]>How about hinges? Some commercial building codes require self-closing hinges in some situations.. Those are an order of magnitude more expensive than a regular old stanley hinge you get at Home Depot. How about desks? Cubicle farms? file cabinets?drop ceilings to allow for electrical and network wiring? raised floors for the same?
I'm sorry but drawing a comparison to spending the same amount on a house is just not valid. Could they save some on this project knowing what they know now, sure.. Is it completely unreasonable? I don't believe so. To skimp so much on a bunch of things on this project would likely devalue the space down the road and negatively impact stockholder value. Walk into nearly any building in Midtown and I'd guess that redoing similar spaces would cost about the same - no matter how cheap the company is... There's just no getting around those realities.
]]>@F-15SBD_GitEmSteveDave: Flip This Multimillion Dollar Office Building
]]>I've stopped caring about all of this since it really misses the larger picture. That is, the widespread societal upheaval that should be happening that ultimately never will because everyone knows, even subconsciously, that they've all gotten too fat from the teat of American culture to ever stand up against their banking masters.
I include myself in that latter part.
]]>I can't believe the commentors on this board who spend so much of their time defending these companies over and over. Are you guys just copying and pasting at this point? Is your sense of outrage limited to a guy who gets screwed at Best Buy? I don't understand why you would waste your time on these boards.
]]>"According to Bloomberg, Citigroup said the project will help it save money over time, as part of a space saving measure."
South Dakota has an excess of space that is a lot cheaper than NYC and Citi even has a little credit card business there...
Love the Sub-Zero in place of executive dining quarters. They truely ARE slumming when execs have to send their own assistant to microwave their daily lunch...
]]>Yes, the top talent might leave and go to one of the 99% of companies that have a hiring freeze or are laying off people.
]]>I have worked a few places that were too damn cheap to provide chairs that were decently useable. So this office suite nonsense is a bit beyond the pale. I guess they learned nothing from AIG's trouble with their spa outings or John Thain's multi-million office redecoration.
]]>@masonreloaded
Maybe true, but I'm convinced that America has and "I know better than you" problem. I'm not going to tell Citi or AIG how to fix their problems, that's there job. If they pay us back (which they will), WTF do I care if they refurnish along the way.
And one more thing, can we PLEASE stop calling this a bailout. Having to give the US Government 5% dividends is a lot of things, a bailout isnt one of them. In fact if the terms of these "bailouts were any more severe, the US Government would be on the Consumerist as a preditory lender!
]]>Is the fridge energy star?
But seriously, come on. This is getting absurd, media.
]]>Bloomberg is reporting that the offices of AIG are using 3-Ply toilet paper and toilet seat protecters that are a paper/cotton blend.
/imagine's Barney Frank getting "spitting mad" over this
]]>I dont care.
]]>I don't defend these scum bags at all, but shit still has to get DONE too. Okay, so they're redoing their buildings. They're giving money to building companies and decorators. Don't building companies need money too?
The AIG thing? We have a right to freak out over that. This, though? Why get worked up that they're improving their workspaces, which they started before this shit all went down. What do you want them to do, leave it half finished until you decide they can finish?
]]>Well, um, at least they are helping stimulate the economy by employing builders?
Or, in other words, "I'm so depressed that I don't even care any more."
]]>10 million probably won't get you a good office....
just kidding :).
]]>These people are so completely out of touch. Have they never heard of Ikea? I mean, it isn't OMG-cheap, but you can outfit an entire office for under $600 and it will look NICE!
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