(Bloomberg) – Last year, Citigroup Inc.
Now, Citigroup is forced to shed light on the details of Lagawan’s own wealth to avoid anger at a prominent shareholder consulting firm.
Earlier this week, Glass Lewis & Co. recommended shareholders vote against Citigroup’s executive compensation proposal at a shareholder meeting on April 29. The company questioned whether the bank disclosed a $52 million bonus to its new bank chief Raghavan in the coming years.
This prompted Citigroup to file an unusual document on Wednesday, which provided Raghawan’s compensation. It provides details than the March 18 filing. Raghavan also received a salary of $22.6 million last year at Citi.
The move helped convince Glass Lewis to flip his advice Thursday. “Although cautious about Mr. Ragwan’s huge signing rewards, the company’s proposed supplementary agent material provides meaningful discussion,” Glass Lewis said in his latest information. “The vote on the proposal is therefore not entirely guaranteed.”
Representatives for Glass Lewis and Citigroup declined to comment.
Consulting firms like Glass Lewis play the role of guardians for senior Wall Street executives, often cutting banks to radiate rewards that don’t match the company’s basic performance. Just last week, Glass Lewis scolded Goldman Sachs Group Inc. for yelling at Goldman Sachs Group Inc.
Raghavan jumped to Citigroup, a commodity hire for CEO Jane Fraser, who has been desperate for the bank’s biggest restructuring for decades. The hard-working trader is tasked with resuming the business to make it more competitive with industry leaders like Goldman Sachs and JPMorgan Chase.
At that time, Raghavan operated JPMorgan’s investment banking franchise in Europe, the Middle East and Africa as well. That perch made him line up for some lucrative spending.
Citigroup said in a filing filed on Wednesday that it would incentivize Ragawan to leave his former employer who agreed to compensate him about $52 million in deferred equity and cash rewards that he must seize at JPMorgan.
The paid equity portion will be granted to Lagarwan over a seven-year period, reflecting the extension that the UK regulator has abandoned at JPMorgan.
The bank wrote in a filing this week that payments to Raghavan to “reflect standard practices” provisions provide no additional reason.
(Updated to add a prior title of the bank in paragraph 9.)
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