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Wells Fargo, led by John Stumpf, took more heat from protestors at its annual meeting even as it defeated a call for an independent review of its mortgage modifications.
April 24 -
Citigroup showed year-over-year revenue growth after JPMorgan and Wells Fargo's top lines fell in the first quarter.
April 15 -
Citigroup (NYSE: C) is overhauling its rules for executive pay to tie compensation more closely to the company's performance.
March 15
The new cast of characters at Citigroup (NYSE:C) got markedly better reviews at this year's annual meeting, though even the star executives themselves acknowledged that their bank's performance needs a lot of work.
Shareholders resoundingly approved Citigroup's executive compensation package on Wednesday, with more than 90% voting in favor of the proposal
While investors at the three-hour-long meeting were characteristically querulous, airing repeated laments about the bank's share price and penny dividend, they ultimately gave a strong endorsement to the bank's new leaders. All of Citigroup's proposals won approval from more than 90% of its shareholders; all of the shareholder proposals that the bank opposed failed. Even shareholder Russell Forenza, one of the most vocal and critical attendees, told Corbat and O'Neill by the end of the meeting that he would give them "an A" for their performances.
The executives themselves were a bit more modest in their self-evaluations. Corbat said that the bank had "its share of disappointments" in 2012 and acknowledged that he faces an uphill battle to accelerate Citigroup's recovery from the financial crisis.
"I'm not going to be satisfied until Citi has completely rebuilt our credibility with all of our stakeholders," Corbat told investors in a Hilton Hotel ballroom in midtown Manhattan.
Much of that credibility was lost during the financial crisis, when Citigroup required three bailouts to survive and turned into the poster child of "too big to fail" banks. The company has sold off or closed down many of its businesses since then, but still remains the third-largest bank in this country. Now, as lawmakers and regulators
"Today, there is no appetite for financial firms to get bigger, whether that's through merging or even through organic growth," he said.
Six months into his new job and fresh from a
"We've started on a path, we've put out public targets, I think that we've got more we need to deliver in terms of transparency … but I think you've got to give me a little bit of time to get there," he told analyst Mike Mayo, a frequent critic of the bank and especially of its previous management.
O'Neill, who became chairman last year and handpicked Corbat to replace Pandit, also gave his protégé a ringing endorsement: "We have seen Mike operate — he is a good manager, he is decisive, and he gets results," he told Mayo. "Given what we think we need at this time in our history, we think he is absolutely the right man."
Asked about his own role at the company and influence over its management, O'Neill called his relationship with Corbat "not intrusive but interested."
"The role of the board is not to run the company" but "to understand and vet the strategy that management brings us … and to [see] that the strategy that we have approved is implemented in as good a way as possible. A subset of that second role is the selection of a leader," O'Neill told Mayo. "I work closely with Mike, and he briefs me on what is going on."
The day marked a return to New York for Citigroup, which last year
A handful of protestors gathered outside the hotel, but metal detectors and a rigorous bag check kept them from infiltrating the main event. (Security guards even refused to allow attendees to bring in coffee.)