Citigroup shareholders have voted against giving top executives a bigger pay deal in a rare show of investor discontent.
The package, which had increased chief executive Vikram Pandit's pay to $15m (£9m), was backed by just 45% of shareholders.
Citigroup's board said it will meet with shareholders to discuss what it called a "serious matter".
High executive pay has come into focus after the global financial crisis.
Citigroup, which was one of the many banks to be rescued during the crisis, had received $45bn in bailout funds from the government in 2008.
"Citigroup is one of most egregious example of disconnect between incentives of top management and value creation of shareholders," said Mike Mayo, bank analyst at brokers CLSA.
"The owners of the big banks, namely the shareholders, are finally taking a greater amount of responsibility by speaking up."
However, the shareholder vote is not binding on the bank.
No comments:
Post a Comment