Citigroup (C) shareholders reject the bank's executive compensation plan after consulting firms...


Citigroup (C) shareholders reject the bank's executive compensation plan after consulting firms called the incentive pay "substantially discretionary ... lack(ing) rigorous goals." "That's a serious matter," says Chairman Dick Parsons, "The BOD ... will seek a more quantitative, formula-based method." Perhaps applauding the vote, shares +3.6%.
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Comments (7)
  • Mrnomad
    , contributor
    Comments (359) | Send Message
     
    It's about time someone reined in these egregious compensation packages. Worse than C is JP Morgan's $23 mill to Dimon. If they have this much money to squander, increase the div.
    17 Apr 2012, 01:42 PM Reply Like
  • LonW
    , contributor
    Comments (217) | Send Message
     
    So I am not the only one who voted against the compensation package. Good!
    17 Apr 2012, 02:39 PM Reply Like
  • qw
    , contributor
    Comments (144) | Send Message
     
    Great ......
    More shareholders should take an active role in voting on issues instead of rubber stamping the Board recommendations.
    17 Apr 2012, 04:02 PM Reply Like
  • Jack Cumming
    , contributor
    Comments (159) | Send Message
     
    Of course, the key to reform of top management compensation lies with the voting power of institutional shareholders. However, most of these have been shirking their responsibilities in this area. Reasons offered include fear of losing business potential with corporations whose proposals they oppose, a get along-go along mentality, and sheer bureaucratic cowardice.

     

    I believe this is an important issue for our country because of the cultural and political implications of grossly overpaying top management. The message to corporate rank and file and to the average American is one of imbalance, greed, and lack of fairness. Can CEO "X" really justify a $20MM+ package or mind boggling severence following mediocre performance???

     

    Is it possible that anger and frustration among intelligent average citizens might even cause them to vote along leftist/socialist lines, thereby bringing more destructive government policies upon us?

     

    Boards should begin to consider the Big Picture as they deal with the issue of top executive compensation. Some of the excess has been harmful to our nation.
    17 Apr 2012, 04:31 PM Reply Like
  • Tudor Invest Holdings
    , contributor
    Comments (708) | Send Message
     
    Hi Jack

     

    Yes it is good to see this action by small investors.
    It came as a surprise to the big fat cats at Citi

     

    I dont have a problem with CEO's getting paid very
    handsomely, providing they deliver to the owners of
    their company. Those are the shareholders.
    And as you know, there are only 2 ways we get
    rewarded. Increase in shareprice and a decent dividend.

     

    BTW - i do think Pandit is the right man for the job
    18 Apr 2012, 12:18 AM Reply Like
  • acesfull
    , contributor
    Comments (441) | Send Message
     
    "BTW - i do think Pandit is the right man for the job "

     

    But for the right price and the right reasons? That is the issue. Nobody wants to knock Pandit personally. Shareholders want to pay him for performance and return on shareholder investment. He and no other CEO should get rewarded for non-performance. It's as simple as that.
    18 Apr 2012, 07:18 AM Reply Like
  • TippingPoint
    , contributor
    Comments (165) | Send Message
     
    Realize that Citi's compensation plan was Dick Parsons parting gift to Vikram. Parsons got rich at TWX in an environment where shareholders routinely rained money on executives regardless of actual results. Ergo, to Parsons this was a reasonable package. But in the real world what they were proposing (especially with what Citi shareholders have been through) it was ridiculous. Citi is getting better not because of anything Pandit is doing but just because the economy is getting better and risk has been reduced. It would be getting better if a teller at Citi was the interim CEO.
    17 Apr 2012, 04:57 PM Reply Like
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