NEW YORK — Five hours and dozens of angry speakers into Citigroup Inc.’s annual meeting Tuesday, a long line of shareholders still waited at the microphone for their chance to vent.
Everything was fair game — from executive pay to the company’s decision to sponsor the Mets’ new baseball stadium, Citi Field. When Chairman Richard Parsons recognized five departing board members, a cry rose from the audience: "Thank God, you’ve gone!”
Citi, the nation’s third largest bank by assets, was the first major bank to hold its annual meeting since last year’s financial collapse. Its future remains uncertain with the government soon to become its biggest shareholder.
CEO Vikram Pandit tried to appease the group at the New York Hilton hotel, emphasizing to shareholders that Citigroup is not the same company it was just a year ago, when it became clear the bank was buckling under billions of dollars in bad debt.
In his opening remarks, Pandit said four new board members will bring "new eyes” to the bank.
He stressed that the company was embarking on a "new strategy” that includes splitting the bank into two parts.
"Citi is one of the great business opportunities of our age,” Pandit said. He added: "I believe to my core that Citigroup has what it takes to rebound, what it takes to rebuild.”
Many are re-elected
Despite shareholders’ venom, all returning directors and four new ones were elected with at least 70 percent of the vote, according to preliminary results. And while some shareholder proposals came close to passing, preliminary results showed none did. Final results will not be released until May, the bank said.
The new board members are former U.S. Bancorp CEO Jerry Grundhofer, former Bank of Hawaii CEO Michael O’Neill, former Philadelphia Federal Reserve President Anthony Santomero and William S. Thompson Jr., former CEO of bond investment manager Pimco.
While many sharehold-ers have called for change at the board level for years, some say the new nominations don’t go far enough.
Shareholders questioned Citigroup’s credit card underwriting standards and the government’s involvement. Other shareholders called the board "Byzantine,” "communist” and "socialist.”
Shareholder Kenneth Steiner said it is ridiculous that a board composed of CEOs and former CEOs gets a say in Citigroup executives’ compensation while shareholders do not.
"It’s like having the Yankees determine the salary of the Mets.”
by the associated press
Everything was fair game — from executive pay to the company’s decision to sponsor the Mets’ new baseball stadium, Citi Field. When Chairman Richard Parsons recognized five departing board members, a cry rose from the audience: "Thank God, you’ve gone!”
Citi, the nation’s third largest bank by assets, was the first major bank to hold its annual meeting since last year’s financial collapse. Its future remains uncertain with the government soon to become its biggest shareholder.
CEO Vikram Pandit tried to appease the group at the New York Hilton hotel, emphasizing to shareholders that Citigroup is not the same company it was just a year ago, when it became clear the bank was buckling under billions of dollars in bad debt.
In his opening remarks, Pandit said four new board members will bring "new eyes” to the bank.
He stressed that the company was embarking on a "new strategy” that includes splitting the bank into two parts.
"Citi is one of the great business opportunities of our age,” Pandit said. He added: "I believe to my core that Citigroup has what it takes to rebound, what it takes to rebuild.”
Many are re-elected
Despite shareholders’ venom, all returning directors and four new ones were elected with at least 70 percent of the vote, according to preliminary results. And while some shareholder proposals came close to passing, preliminary results showed none did. Final results will not be released until May, the bank said.
The new board members are former U.S. Bancorp CEO Jerry Grundhofer, former Bank of Hawaii CEO Michael O’Neill, former Philadelphia Federal Reserve President Anthony Santomero and William S. Thompson Jr., former CEO of bond investment manager Pimco.
While many sharehold-ers have called for change at the board level for years, some say the new nominations don’t go far enough.
Shareholders questioned Citigroup’s credit card underwriting standards and the government’s involvement. Other shareholders called the board "Byzantine,” "communist” and "socialist.”
Shareholder Kenneth Steiner said it is ridiculous that a board composed of CEOs and former CEOs gets a say in Citigroup executives’ compensation while shareholders do not.
"It’s like having the Yankees determine the salary of the Mets.”
by the associated press
No comments:
Post a Comment