Citigroup Inc. investors rejected the bank's executive pay plan, a first among the six largest U.S. lenders, amid criticism it lets Chief Executive Officer Vikram Pandit collect millions of dollars in rewards too easily.
About 45 percent of the votes favored the plan, which Citigroup had argued would help attract and retain top talent, according to a preliminary tally at the New York-based firm's annual meeting in Dallas today. While the vote isn't binding, outgoing Chairman Richard Parsons said changes will be made.
"That's a serious matter," Parsons said. The board will seek a more quantitative, formula-based method for setting top executives' pay, he said. "We're going to have some more conversation with our shareholders, make sure we understand their concerns and then fix it."
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