Citigroup is embroiled in a legal row with a former senior executive whose multi-million dollar severance package was frozen last year at the height of the political storm over bankers' pay, according to people close to the situation.
The decision by Kevin Kessinger, a former head of technology, to take legal action to force Citi to resume paying his severance is likely to fuel the debate over Wall Street's compensation just as banks are set to announce 2009 bonuses.
People familiar with the matter said Mr Kessinger had decided to take Citi to arbitration, a form of out-of-court dispute resolution.
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