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Citi Shareholders Reject $50M in Exec Compensation

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  • Description

    FBN's Liz MacDonald on Citi shareholders putting execs at banks on notice.

  • Duration 3:04
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-- Fox Business well we have been following this story for you all morning long Citigroup.

Became the first major US bank to have its shareholders reject the pay package at its CEO and other executives.

Elizabeth MacDonald has some breaking details on the story -- what did you learn now -- this is an historic event.

A milestone event the first big US bank to see its CEO pay another executive pay.

Rejected by shareholders are breaking news as this should Cheryl -- just so we're speaking with sources at Citigroup.

At issue was Vikram Pandit -- out of his fifteen million dollar pay package that was rejected by shareholders at stake here is.

Thirteen million dollars in retention pay.

Meaning bonuses meaning cash bonuses and stock pay and what we're also hearing is set at issue for all five executives at Citigroup.

Who got their got compensation rejected by shareholders.

Fifty million dollars 50 million dollars is at stake -- see here on this full screen I -- cities Vikram Pandit -- right up there -- Jamie Dimon when it comes executive pay.

And he's right up there with Goldman Sachs is Lloyd Blankfein.

So this what they shareholder they're essentially saying look it's been a decade long record -- -- really poor stock performance.

-- and high executive pay calpers weighing -- a top Florida public pension worker fund.

Weighing into getting that share shareholder vote through this is a non binding -- it comes out as of because of Dodd-Frank.

Dodd-Frank put a non binding say on pay shareholders -- us.

And now what's happening behind the scenes is they're scrambling at Citigroup Cheryl.

They're trying to figure out how to move forward with this non binding vote and what to do about -- Vikram Pandit -- door.

Closing of course they -- but I'm curious what the shareholders -- wanna get a more about what you do what exactly is their main beef right now of Vikram Pandit who has survived.

Yes the later as Citigroup and others have not other banks about even survived at all is it is it the way that they handled the bail us as a regulation it is.

Mergers that have gone south is -- trading revenues I mean what are they really focusing in on what they're as a worsening on.

-- is saved is that performance targets that the executives.

Have to hit and they air saying look they're really lacks.

And -- -- executives have an underperforming especially when it comes to cutting back on the expenses.

The -- throughout Citigroup so.

Essentially you know Vikram Pandit was only getting -- dollars' worth of total compensation since 2009.

He didn't get nearly eighty million dollars when he sold his hedge fund old lane.

To Citigroup's so we have named CEO that Citigroup Vikram had -- saying.

Look we posted eight straight quarters of profitability we did repay the US government our tart money.

But the shareholders saying you know what not good enough this stock has been flat lining.

And fact Cheryl is below its trading aid and loans is now rearing it's it's trading below its -- reverse split there any other one.

I and I respect that and they're gonna wanna see another asset sale other gonna wanna see new leadership but recently made the voices heard didn't they -- -- -- right.

Are -- -- -- thank you very much live from our newsroom while.

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