Citigroup (C) Will Cap Cash Bonuses

Citigroup (NYSE: C) plans to cap its 2009 cash bonuses for bankers at $100,000, which is being done to appease the public's dismay towards Wall Street firms that received taxpayer money, according to a report in the Financial Times.

The move could make it difficult for Citigroup to keep its top talent from leaving, as the bonus structure is expected to mirror that of 2008, which was relatively low compared to other years for the company.

The sources said that a large part of the overall bonuses to be paid will be made up of stock that will not be eligible for sale for a number of years.

The move could be in part due to the tax being placed on banks that were bailed out during the recession. President Barack Obama announced a "TARP tax" yesterday that is designed to recoup all of the taxpayer dollars put into the financial system.

Citigroup is no longer under the pay restrictions of the government after it paid back $20 billion in funds from the Troubled Asset Relief Program last month, so the company is free to pay its bankers bonuses as it sees fit.

Shares of Citigroup are down 2.4 percent to $3.46 in current market movement.