There's Still Turmoil Over Executive Bonuses At Citigroup
Yesterday, Citigroup announced that it's CEO Michael Corbat would be paid $11.5 million for 2012.Today, Dealbook has written about the fall-out from that announcement.
The verdict: Shareholders are still upset about the way
Shareholder reaction here is more important than at any other bank on
Pandit (despite having take $1 as
The board was hoping that with a new CEO, and after the agitation of the past year, there would be some change at Citi — and there was some change, but it doesn't sound like enough.
Nell Minow, a shareholder advocate at GMI Ratings, said the new approach was “far from perfect, or even good, but it’s less terrible than it used to be.” Citi’s board members will continue to approve base salaries, cash bonuses and deferred stock given to top Citi executives, the same way they were in the past. But now a new segment of the pay, called performance share units, will be linked to the new metrics. For 2012, Mr. Corbat was awarded $3.1 million in performance share units. That amounts to 27 percent of his total $11.5 million pay package.
A spokesperson for the huge pension fund, CalPERS (California Public Employees’ Retirement System) didn't sound jazzed either.
“We’d like to make sure that the incentive structures aren’t focusing on revenues and returns without thinking about risk, because that’s how we got ourselves into the financial crisis,” said Ms. Simpson.
Read the full story at Dealbook
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