At today’s Citigroup shareholder meeting in New York City, AFL-CIO Office of Investment Director Heather Slavkin Corzo challenged the Wall Street bank’s influence in Washington. At the meeting, Corzo introduced a proposal to require disclosure of Citigroup’s government service golden parachutes.
As an investor in Citigroup, the AFL-CIO asked the company last November to explain why the company pays golden parachutes to executives who take jobs with the government. The AFL-CIO filed the shareholder proposal after Citigroup failed to respond to AFL-CIO President Richard Trumka’s letter.
Among Citigroup’s highly placed alumni in Washington are Treasury Secretary Jack Lew, who received as much as $500,000 worth of stock awards when he left Citigroup for a government job, and U.S. Trade Representative Michael Froman who collected more than $4 million when he joined the Obama administration.
Also on Citigroup’s ballot was a shareholder proposal requesting that the company disclose details of its lobbying efforts. Citigroup one of the biggest Wall Street spenders on lobbying in Washington, and this proposal would ensure transparency to shareholders on these expenditures.
Citigroup’s clout in Washington was on full display last December when the bank helped push through a law that gutted an important provision of the Dodd–Frank Act. The Citigroup-supported bill repealed a requirement for banks to “push out” risky derivatives trading into separate units that are not insured by taxpayers.
The AFL-CIO’s shareholder proposal on government service golden parachutes received 26.4% of the votes cast. The proposal also will go to a vote later this year at J.P. Morgan, Goldman Sachs and Morgan Stanley.