San Diego, CA -- (SBWIRE) -- 05/01/2012 -- An investor in Citigroup Inc. (NYSE:C) shares filed a lawsuit against directors over alleges breaches of fiduciary duties by awarding more than $54 million of compensation in 2011 to certain top executives, including almost $15million to its CEO.
Investors who are current long-term stockholders of Citigroup Inc. (NYSE:C) shares and currently hold a substantial amount in NYSE:C shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that certain executives and directors of Citigroup Inc. received generous salaries while Citigroup’s performance did not necessarily justify it and while its stock fell by more than 44%. He says that the CEO’s $15 million pay violates the bank’s own compensation policy and directors breached their fiduciary duties by awarding it.
Citigroup shareholders voted to reject Citigroup’s executive compensation plan, which included approving the CEO’s $15 million pay package, at the annual meeting on April 17, 2012.
The plaintiff says that vote has cast doubt on the board's decision-making process, as well as the accuracy and truthfulness of its public statements and absent this lawsuit, the majority will of the company's stockholders shall be rendered meaningless."
The plaintiff alleges that the board of directors spent funds in an unwarranted and excessive manner on compensation packages for its executives.
The CEO of Citigroup received in 2010 a symbolic $1 and in 2009 $128,741. In 2011 he was paid total compensation of more than $14.9million. A raise of 1,499,999,900% over his 2010 compensation, so the plaintiff
NYSE:C shares closed on April 30, 2012, at $33.04 per share, which is significantly down from its current 52week High of $46.00 per share.
Those who purchased Citigroup Inc. (NYSE:C) and currently hold those NYSE:C shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego