Citigroup Sued Over 'Exorbitant' Executive Pay Hikes

Law360, New York (May 1, 2012, 6:12 PM EDT) -- Citigroup Inc.'s board of directors was hit with a derivative shareholder suit Monday alleging it irrationally squandered company assets by bestowing “exorbitant and unwarranted” pay increases on top executive officers last year.

The suit, filed in New York state court, accuses the board and certain executive officers and former directors of approving hefty pay hikes to executives despite the “colossal failure” of Citigroup, which saw share prices tumble and necessitated billions in federal bailout funds in 2008.

“'Too big to fail' and Citigroup were synonymous in...
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