Citicorp executives granted unusual stock options

August 18, 1993|By New York Times News Service

NEW YORK -- Citicorp has granted its top executives stock options that could be worth as much as $200 million if the price of Citicorp stock doubles over the next five years.

The program is unusual in that the options are worthless until the bank's stock, which now trades at about $32, reaches $50, according to a recent filing with the Securities and Exchange Commission.

Most stock option plans simply require an executive to remain at a company for a set period of time before exercising them. Citicorp is among a handful of companies to set such a high hurdle for performance before the options become valuable.

"This is pretty unique because it closely aligns the interests of management and the shareholders," said Ronald Mandle, an analyst with Sanford C. Bernstein.

Citicorp Chairman John S. Reed and the next five most senior executives were granted options on 150,000 shares each. Each of these executives could earn a profit of $4.2 million if the options are exercised when the stock reaches $60 a share.

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