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FBN’s Gerri Willis on Citigroup shareholders voting against a $50 million executive pay package.
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-- strikes back.
The silent majority finally heard from at -- group's annual meeting owners of the stock voted 55% 45%.
Against a fifty million dollar executive pay package which included fifteen million bucks for CEO Vikram Pandit.
Now this is all thanks to the Dodd-Frank financial overhaul law.
Buried in his 2300 pages as a requirement for public companies to say no on pay these votes for executive compensation.
Now the votes non binding but the chairman of Citigroup Dick Parsons said he took it seriously and promised promised the board would consider.
Carefully.
Shareholders have every right to be upset with Vikram bats -- because of the last decade Citigroup has had the worst stock price performance of the big banks.
But consistently had some of the highest executive compensation.
Citi shares up slightly today but they're down more than 80% since the financial crisis hit.
They're down get this 93%.
From 2006.
That's not a pretty stock chart.
Last year Pandit got one point seven million dollar salary plus 85 point three million cash bonus.
You get this he got a forty million dollar retention package that pays out through 2015.
Is that not enough money.
Getting a bonus well it should be a -- cake for these exacts -- since the standard for the -- -- is an earnings track record half.
Of what they actually did in 2009 in 2010 when the economy was in the tank.
Well guys don't get too ambitious here.
Look to be fair to Pandit for 2009 -- in 2010.
He except in just a dollar in salary.
But to be fair to shareholders.
-- quarterly dividend is one -- At -- started this week Citigroup announce its first quarter profit had fallen 2% from a year earlier on a paltry 1% rise in revenue not too impressive.
The Federal Reserve turned the company down on its request for share buyback or dividend.
After Citi flunked the Central Bank stress test in March and don't forget the bank was one of many bailed out during the financial crisis.
So evil bridal and anybody earning millions of dollars a year but not me look if you -- gross sales boost the bottom line raise the share price.
Then by all means you are in a fat paycheck but what we can't do is reward mediocrity.
Failure.
That's a lot not to like there's -- not a lot not to like about Dodd-Frank about 22099.
Pages worth.
But if he asks me about shareholder say on pay.
-- say OK with me last year shareholders voted down just 2% of executive pay plans maybe this is the start of a new trend.
