Citibank Deaf to Shareholders Rebuke Thinks it was Just Poor Communication, Not Poor Decision MakingQuicklink submitted By Amanda Lang Permalink
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|Richard Parsons, who chaired the Citigroup Inc board that lost a shareholder vote this week on executive compensation, said on Thursday that directors had failed to adequately explain to investors the methods they used to determine pay packages.
At Citi's annual meeting on Tuesday, only 45 percent of shareholders endorsed the pay plan in an advisory vote required under the 2010 Dodd-Frank financial oversight law.
Under Parsons' chairmanship, the Citigroup board paid CEO Vikram Pandit $15 million in 2011. Outside proxy advisory firms used by institutional investors had criticized the pay plans for leaving too much room for director discretion and not adhering closely to measurements of Pandit's performance.
The "say on pay" vote was non-binding, but it was an embarrassing rebuke for the bank by its investors.