Citigroup chiefs booed by irate investors

[Omaha Steve]

http://www.independent.co.uk/news/business/news/citigroup-chiefs-booed-by-irate-investors-814113.html

By Stephen Foley in New York
Wednesday, 23 April 2008

The chairman and chief executive of Citigroup were heckled and booed at the financial giant's annual shareholder meeting yesterday. The rest of the board was assailed for pocketing giant pay packages while the company lost billions of dollars on sub-prime mortgages.

Vikram Pandit, who was installed as chief executive in December, faced questions from a number of the thousands of employees made redundant in the latest round of cost-cutting and was jeered when he said that such decisions were tough to make.

And Sir Win Bischoff, the British investment banker who is now Citigroup's chairman, was booed as he repeatedly tried to cut questioners short and keep a grip on the fractious meeting.

Citigroup's shareholders vented their fury at the company's handling of the credit crisis, which led to $20.4bn in write-offs last year, a further $9.1bn so far this year and no guarantee that there will not be more to come. In particular, they are angry at a savage dividend cut imposed by Mr Pandit to help conserve cash.

And a powerful union organisation promised yesterday that it would move next year to oust the board unless it is refreshed with new blood and begins to consider major strategic changes, such as breaking up the company.

"The company operates more like a run-down department store than a financial supermarket," said Rich Ferlauto of the AFL-CIO, in an assault on boardroom excess that was repeatedly interrupted with applause. "Shareholders shouldn't be the only ones that suffer. I think the theme of this meeting is outrage at the form and size and scope of executive compensation at this company."

FULL story at link.

[Adsos Letter]

1. Ah...

something like the re-convening of the Estates General...I wonder if these guys will end up at the shareholder guillotine?

[cascadiance]

3. Marie Antoinette is being seen in many places these days!

... and the corresponding revulsion for people of her ilk that we have too much of in our midst today!

[Adsos Letter]

4. Have you read LeFebvre's "The Coming of the French Revolution?"

I know, I know...it's way off topic (sort of) and a very weird question.

And yet, curiosity compels me to ask... :D

Edit: syntax :dunce:

[BlooInBloo]

2. As long as the interests of execs are so different from the interests of shareholders...

.... this kind of shit will continue to happen.

[autorank]

5. Run them out of town. Three cheers for the AFL-CIO's representative

We are entering a new era and this article is a perfect example of what we'll be seeing.

Just amazing. k*r

[annabanana]

6. People are always more tender in their pocketbooks

than they are in their consciences.