Can Ciitgroup Shareholders Launch a Revolt on Banks?
Interesting to say the least.
[QUOTE]The shareholders of Citigroup voted to reject the generous pay package of the CEO Vikram Pandit this week, setting up a potential showdown that could ripple throughout the corporate world. [B]The "advisory" vote — which is required by the Dodd-Frank Act, but is not binding — now puts the company's directors in awkward position. The can go along with it and ask Pandit to "give back" some of the $34 million it paid him last year, or can they can ignore it and defy the people they theoretically work for. [/B]Neither option is attractive, but how it plays out could change the very nature of the shareholder-corporation relationship. [B]It's the first time a major Wall Street firm has had to face such a vote and it probably won't be the last one to lose it.[/B][/QUOTE]
Not just banks. Shareholder ca and have changed things at major companies in the recent past.
At Disney, the CEO got thrown out. The same thing happened at Hewlett Packard when Carly Fiorina (a total imcompetent) was voted out by shareholders.
The situation at Citi is bizarre. The went from a comapny payng a $2+ dividend to zero. The had a reverse split on the stock - holders got 1 share for every 10 they held. I'm surprised it took this long for action.
It's not the little guys who make things happen. It's the big holders of stock - mutual funds.