3, 2012 7:51 pm
investor relations chief
has moved its head of investor relations less than three months after
embarrassing defeat on an executive “say on pay” vote.
John Andrews will shift to a new role working on “institutional client
content development and marketing”, Citi said in an internal memo.
The move had nothing to do with the defeat at the annual meeting in
April, according to people at the bank, who said Mr Andrews was not
being held responsible for the fractious relationship between the
company and some leading shareholders.
But senior Citi executives have been frustrated that some bankers
charged with investor relations did not manage to prevent the
rebellion at the meeting in Dallas where 55 per cent of shareholders
either went against the pay plan or abstained.
The California Public Employee’s Retirement System voted against the
plan and said Citi had failed to “demonstrate that rewards are being
earned for performance”.
Citi has not announced any changes to the pay plan, which has been
criticised for setting modest profit targets for executives to reap
millions of dollars of bonuses. Last year
chief executive, was paid $15m in salary, bonus and
“Here we are a few months after the negative say-on-pay vote and
Citigroup’s done nothing,” said one analyst.
Michael O’Neill, who
Parsons as chairman after the meeting, is speaking to
leading shareholders to explore how Citi might reform the way it deals
with investors, according to people familiar with those moves.
Mr Andrews, an alumnus of Goldman Sachs, Morgan Stanley and Citadel,
did not immediately return a call. Citi declined to comment.
In the internal memo, John Gerspach, chief financial officer, and Jim
O’Donnell, head of investor sales, told staff that Mr Andrew would be
leading a team that delivers markets analysis to institutional
“He will create a formal structure to harness Citi’s corporate-wide
internal experts and deliver rapid insight around market-moving
events,” they said.
Susan Kendall, deputy head of investor relations, was named interim
head of the department.
Mr Andrews has supporters within the bank and some believe it was
others tasked with relations with shareholders who fell short.
“As John is thoroughly knowledgeable about Citi’s global businesses
and where we have unique content, we believe he will be a great asset
in leveraging this content for our institutional investor client
base,” the memo said.
© The Financial Times Ltd 2012