Citigroup shareholders have voted against giving top executive pay increases. Citigroup’s board has in return said that it will meet with shareholders to discuss what it called a “serious matter” reports the BBC.
The packages, which had increased chief executive Vikram Pandit’s pay to $15 million was backed by just 45% of shareholders.
Citgroup, one of the many banks to be rescued during the crisis, received a total of $45 billion in bailout funds from the government in 2008.
The bank announced Tuesday that its net income declined 2% to $2.9 billion in the first quarter. In addition, Citigroup was one of four major US banks that failed to pass a stress test carried out by the authorities earlier this year. The stress test was conducted to test whether the bank would be able to withstand a serious downturn in the financial markets.
The BBC reported that analysts said that shareholders were not happy with the fact that the bank was increasing compensation to its top executives while investors on the other hand were losing out.