Citibank faces investor rebellion

Shareholders in Citigroup staged a significant rebellion over its executive pay scheme as more than a third of votes were cast against the bank.

Citi this year increased the potential pay package for Michael Corbat, chief executive, by 27 percent to $16.5 million.

Leading corporate governance groups that advise investors, Institutional Shareholder Services and Glass Lewis, took issue with the scheme.

The pay plans were approved but 36.4 percent of votes were cast against.

At Citi’s annual meeting on Tuesday, Citi shareholders overwhelmingly dismissed other motions calling for directors to consider a break-up of the bank and another to strengthen bonus “claw back” provisions.

Mr Corbat defended Citi’s structure pointing to the benefits of keeping the retail and investment business together.

Still, significant minorities backed two other motions put forward by investors.

Almost a quarter were cast in favour of a call for the bank to be more transparent in its “use of corporate funds to influence legislation and regulation”.

However, according to City it “already has extensive disclosure practices pertaining to its political contributions and lobbying activities”.