Citigroup gets employee bonus plan through, as Pandit defies his critics

Chief executive Vikram Pandit said yesterday that Citigroup has proved its doubters wrong and is now "positioned for growth".

Addressing the Wall Street banking group's annual general meeting, he said: "I feel a whole lot better than I did a year ago. We are doing what many of the critics and pundits said could not be done."

This followed news the previous day that Citigroup had posted a profit of $4.4bn (£2.9bn) in the first quarter. This marked the bank's best return in three years, swinging from a $7.5bn loss in the last three months of 2009.

Shareholders at the AGM approved a plan to issue employees with $1.7bn in stock instead of a cash bonus and also voted to approve a potential "reverse stock split" at the company.

The US Treasury Department, which owns 7.7bn shares in the group, announced it had voted at the AGM, but had not changed the outcome of the votes, in a statement yesterday.

The US government backed all 15 directors nominated to serve on the board. It also said it had voted proportionally to not influence the vote on the "say on pay" resolution. The move gives shareholders the right to cast an advisory vote on approving the remuneration package for executives. The Treasury statement said that it "strongly supports the concept that shareholders should have the ability to vote on executive compensation".

The US Treasury also voted in favour of the potential split, saying the company had "a much larger number of shares outstanding than is necessary to ensure adequate trading liquidity".

A reverse split reduces the number of outstanding shares and lifts the price of those remaining accordingly.

Richard Parsons, Citigroup's chairman, said yesterday that the board had still not decided whether to carry out the split, after first gaining approval for the move last year.

Smaller shareholders at yesterday's meeting also called for the reinstatement of the dividend, in a stock that has been diluted 81 per cent in the past year. The company has been forced to issue shares in a bid to stabilise its precarious financial position.

The US government took the stake in Citigroup – currently a holding of 27 per cent of the total outstanding stock – under its Troubled Assets Relief Program (Tarp) in the autumn of 2008. It said yesterday: "The Treasury is a reluctant shareholder in private companies and intends to dispose of its Tarp investments as quickly as is practicable." The government said it would only vote on "core shareholder issues" including the election of directors and substantial asset sales.

PROMOTED VIDEO
Sport
Ojo Onaolapo celebrates winning the bronze medal
commonwealth games
Arts and Entertainment
Rock band Led Zeppelin in the early 1970s
musicLed Zeppelin to release alternative Stairway To Heaven after 43 years
News
i100
News
Prince Harry is clearing enjoying the Commonwealth Games judging by this photo
people(a real one this time)
Extras
indybest
News
Richard Norris in GQ
mediaGQ features photo shoot with man who underwent full face transplant
Sport
Lionel Messi looks on at the end of the final
football
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Gardai wait for the naked man, who had gone for a skinny dip in Belfast Lough
newsTwo skinny dippers threatened with inclusion on sex offenders’ register as naturists criminalised
News
Your picture is everything in the shallow world of online dating
i100
News
The Swiss Re tower or 'Gherkin' was at one time the UK’s most expensive office when German bank IVG and private equity firm Evans Randall bought it
news
Life and Style
Attractive women on the Internet: not a myth
techOkCupid boasts about Facebook-style experiments on users
Sport
Van Gaal said that his challenge in taking over Bobby Robson's Barcelona team in 1993 has been easier than the task of resurrecting the current United side
football
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Graduate / Trainee Recruitment Consultant - IT

£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...

HR Business Partner - Banking Finance - Brentwood - £45K

£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...

PA / Team Secretary - Wimbledon

£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...

HR Business Partner (Maternity Cover 12 Months)

£30000 - £34000 Per Annum 25 days holiday, Private healthcare: Clearwater Peop...

Day In a Page

The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
Countries that don’t survey their tigers risk losing them altogether

Countries that don’t survey their tigers risk losing them

Jonathon Porritt sounds the alarm
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz
A new Russian revolution: Cracks start to appear in Putin’s Kremlin power bloc

A new Russian revolution

Cracks start to appear in Putin’s Kremlin power bloc
Eugene de Kock: Apartheid’s sadistic killer that his country cannot forgive

Apartheid’s sadistic killer that his country cannot forgive

The debate rages in South Africa over whether Eugene de Kock should ever be released from jail
Standing my ground: If sitting is bad for your health, what happens when you stay on your feet for a whole month?

Standing my ground

If sitting is bad for your health, what happens when you stay on your feet for a whole month?
Commonwealth Games 2014: Dai Greene prays for chance to rebuild after injury agony

Greene prays for chance to rebuild after injury agony

Welsh hurdler was World, European and Commonwealth champion, but then the injuries crept in
Israel-Gaza conflict: Secret report helps Israelis to hide facts

Patrick Cockburn: Secret report helps Israel to hide facts

The slickness of Israel's spokesmen is rooted in directions set down by pollster Frank Luntz
The man who dared to go on holiday

The man who dared to go on holiday

New York's mayor has taken a vacation - in a nation that has still to enforce paid leave, it caused quite a stir, reports Rupert Cornwell
Best comedians: How the professionals go about their funny business, from Sarah Millican to Marcus Brigstocke

Best comedians: How the professionals go about their funny business

For all those wanting to know how stand-ups keep standing, here are some of the best moments
The Guest List 2014: Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks

The Guest List 2014

Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks
Jokes on Hollywood: 'With comedy film audiences shrinking, it’s time to move on'

Jokes on Hollywood

With comedy film audiences shrinking, it’s time to move on