Citigroup shareholders have rejected a pay plan which promised tens of millions of dollars to its chief executive Vikram Pandit and its directors.
Around 55 per cent of shareholders voted against the plan or abstained at Citi’s annual meeting in a non-binding vote.
The Financial Times reports that Citi is the first big US bank to suffer a majority opposition in a “say-on-pay” ballot and is only the 12th S&P 500 to suffer such a loss.
The FT reports departing Citi chairman Richard Parsons described the situation as “a serious matter” with directors set to consult with shareholders over their opposition to the pay plan.
UK-based proxy voting agency Manifest’s chief executive Sarah Wilson told the FT: “Shareholders have been giving banks some time to find their way and do the right thing on pay, but I think patience is running out.”