April 23, 2012
Rep. Frank proud of shareholder revolt
Representative Barney Frank (D-MA). (UPI Photo/Roger L. Wollenberg)
BOSTON (UPI) -- Rep. Barney Frank, D-Mass., said shareholders at Citigroup would likely spur shareholders elsewhere to reject excessive executive pay packages.
"I do think it's going to encourage others to do this," Frank said of the 55 percent shareholder majority at Citigroup that voted to say no to Chief Executive Officer Vikram Pandit's pay package.
The non-binding vote was made possible by a provision in the Frank-Dodd financial overhaul bill that provided for shareholder votes on executive pay.
Franks said he felt "very proud" of the shareholder revolt, the Boston Herald reported Friday.
Pandit was paid $15 million in 2011 and granted $34 million in bonus pay, the Herald said.
Although the vote is non-binding, Citigroup Chairman Richard Parsons called it "a serious matter."
He said the board would explore other ways to calculate executive pay.
"We're going to have some more conversation with our shareholders ... and then fix it," Parsons told reporters.
Absolutely! I think that when each group takes the time to invest their empolyee's growth, you are able to see a noticeable change within that group. If the organization promotes the same pathway to growth opportunity then the change is multiplied. The question is do you have a knowledgeable and engaged guide to direct your travel down the path, or is the path just lightly traveled? If you have a named guide, at the organizational level, then there is no value to customers and shareholders because there is no engagement. What you will see when one group is fully engaged in growth, is a slow wave of other groups want the same thing. This eventually leads to customer and shareholder value, just longer to realize.
Umm, are you really just giving this info out for nohgint?