Citigroup Says Pay Plan Investors Shunned Helped Keep Corbat

James Post, School of Management

Citigroup Inc. (C) said a profit- sharing plan, among pay practices shareholders rejected last year, helped return the bank to profitability by retaining leaders including Chief Executive Officer Michael Corbat…

Expert quote:

“Had the board and CEO pulled back on those payments, or negotiated smaller amounts in light of the say-on-pay vote by shareholders, the payments would seem more credible. They have chosen not to do so, however, and they are asking shareholders to swallow these very large payments.”

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