“In part because he failed to stop traders from rigging the foreign-exchange markets” Citigroup Inc. Chairman Michael O’Neill announced CEO Michael Corbat’s 2014 compensation would be cut by an undisclosed amount.
The exact fine that will be paid for rigging the markets is not known as Citigroup is still in discussions with the Department of Justice. It’s unlikely any fine with be material, especially to executives who never do jail time over such matters and never pay from their own pockets any fines. Any fines are paid for by shareholders, mostly main street Americans who own shares via pension funds.
The executive previously had is pay docked 10 percent because of fraud that took place in Mexico and the Federal Reserve’s rejection of the New York-based company’s 2014 capital plan.
Previous illegal activity by the bank, namely the sale of mortgage-backed securities in the run-up to the financial crisis, which led to a $7 billion settlement in July, came before the 54-year-old CEO took over, the chairman said.
In a clear sign that pension funds and other large institutional holder of stock, on behalf of working Americans it should be noted, are in on the egregious CEO pay scam, shareholders voted against a proposal that would have deferred a portion of top executives’ pay for 10 years and used the money to cover fines if the bank is found to have broken laws.
Only about 4.9 percent of investors voted in favor of the logical plan.
With no executive pay now tied to fines, the company is free to carry on its criminal enterprise and concoct new schemes to defraud the financial markets.