Regional Banks Feeling Citi Pay Pain

April 18, 2012 – In The News
The Wall Street Journal
Citigroup Inc. directors recently met but took no action in response to the shareholder vote against the compensation package for top executives of the bank. The shareholder vote came in the aftermath of a proposed $15-million pay package for current Citigroup Inc. Chief Executive, Vikram Pandit. Proxy-advisory firms Glass Lewis & Co. and Institutional Shareholder Services, Inc. had advised shareholders to vote against the proposed compensation package.

Robert M. Fields, Chair of the firm’s Executive Compensation Group, believes that the Citigroup vote “will fuel more legal action,” because it “is going to raise everybody’s consciousness.” Fields expects that the shareholders unhappy about the exorbitant executive pay packages will bring the litigation. Although there were a handful of suits against executive pay packages after the 2010 annual meetings, none of them prevailed, Fields said.