In April 2012, Citigroup’s
shareholders voted against the bank’s proposed $15 million compensation for the
CEO, Vikram Pandit. This was the first time a majority on a stockholder vote—in
this case, 55 percent—united in opposition to what was considered “outsized compensation at a financial giant.”[1] Shortly thereafter, a major
stockholder sued Citigroup for breach of fiduciary duty (owed to the
stockholders) for excessive executive compensation. Nevertheless, the prognosis
is not so bad for the “top brass” on Wall Street; they need not worry unless
the votes were to become binding and managements were barred from voting
proxies.
The full essay is at "Spanked by Stockholders."
1. Jessica Greenberg and Nelson Schwartz, “Shareholders in Citigroup Reject Executive Pay Plan,” The New York Times, April 18, 2012.