NEW YORK — Citigroup has become the first Wall Street bank to get a thumbs-down from shareholders over outsized executive pay.

At its annual meeting Tuesday, 55 percent of the bank’s shareholders voted against the pay packages that have been granted to Citigroup’s top executives, including CEO Vikram Pandit’s $15 million for last year and $10 million retention pay. The vote is advisory and won’t force the bank to change its pay practices, but it did send a powerful message of discontent to Citi’s leadership.

“This vote is historic,” said Eleanor Bloxham, CEO of The Value Alliance, a board advisory firm. “None of the Wall Street firms have received this kind of a review yet.”

Wall Street’s massive compensation packages have raised the ire of shareholders for years, especially when they appear to have little relation to the performance of specific executives. Bonuses became a flashpoint of public outrage after the 2008 financial meltdown, which was caused in large part by those same Wall Street firms. But compensation has remained high.

Until Tuesday, shareholders haven’t voted in large enough numbers against Wall Street pay packages to make a difference. Under the Dodd-Frank financial overhaul law, major U.S. companies are required to allow shareholders to have a “say on pay” vote at least every three years. The votes are not binding.

“Citigroup is one of most egregious example of disconnect between incentives of top management and value creation of shareholders,” said Mike Mayo, bank analyst at brokerage firm CLSA and author of the book “Exile on Wall Street.” “Shareholders are finally taking a greater amount of responsibility by speaking up.”

Since Pandit became CEO in December 2007 through the end of 2011, Citigroup stock was down 90 percent. But the bank has reported profits for two years now.

 


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