19 Apr 2012

Citigroup shareholders vote against executive pay rises

11:15 am on 19 April 2012

Shareholders at American bank Citigroup have rejected a proposed package of bonuses for the company's senior managers, making it the first big United States bank to suffer such a revolt over executive pay.

More than half (55%) of Citigroup's shareholders either voted against or abstained in a non-binding vote on the plan, which included payments of $15 million to chief executive Vikram Pandit.

The BBC reports that Citigroup's board will meet with shareholders to discuss what it calls a "serious matter".

High executive pay has come into focus since the global financial crisis. Citigroup - one of the banks to be rescued during the crisis - received $US45 billion in bailout funds from the US government in 2008.

On Tuesday it announced that its net income had declined 2% to $2.9 billion in the first three months of the year, compared with the same period in 2011.

The bank's shares have fallen by 24% in the past twelve months with the stock losing more than 90% of its value in the past five years.