You may not know the name Vikram Pandit, but you're familiar with his work.
He’s the Chief Executive Officer for Citigroup. And well, he is having kind of an awkward week.
You see, on Tuesday, at the financial megacorporation’s annual shareholders meeting in Dallas, a majority of those who owned a piece of the company voted that Vikram’s purposed pay package -- of $15 million -- was too much. This kind of a vote is new and actually required by 2010’s Dodd-Frank financial reform law.
Of course, such “say on pay” votes are non-binding, but do influence the final decision of the company’s Board of Directors.
The vote also makes sense because Citigroup has the poorest performing stock of the big banks, but is one of the top payers of execs. But, don’t think Vikram has been raking it in while his company has been in the dumps. He famously took only $1 in pay for 2009 and 2010 while leading the bank through recession.
If anything, this is a big deal because it’s the first time a major bank has rebuked a CEO’s huge paycheck (and it might be the first of many similar shareholder votes). The next major bank’s shareholder meeting is Bank of America's (in May), which has had one PR blunder after another this year.
If anything, this trend should make financial news a bit more entertaining.
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