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Executives’ pay was criticized by critics, as an undeserving salary was paid for them after performing poorly where the Citigroup Inc. has failed to silence them.

A new pay package for its CEO and executives was later announced by the bank in order to silence the protest. However, critics remained unsatisfied with the changes.  

Shareholders of Citigroup were recommended by the Institutional Shareholders Services (ISS) – an organization advising investors to vote on their share, to vote against the new pay plan at the next annual meeting this month.

Another advising firm, Glass Lewis & Co. made a similar recommendation for the shareholders as changes were lacking.  

Executives are usually paid from own performance of a bank as well as how its rivals have performed. The top competitors of Citigroup include Bank of America, JP Morgan Chase & Co, Wells Fargo & Co, Goldman Sachs, and Morgan Stanley.

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The executives could reach a value as high as 150% of unit shares under the old plan, if the bank performed better than its peers, whether the shareholder’s absolute return is negative.

However, under the new plan, the executives will not earn more than the original value of the unit if the shareholder’s return is negative, even Citigroup has performed well compared to its peers. The shareholders’ return substantially relies on the price per share.

Thus, with the new plan, it has put limitations on how much Mr. Corbat, along with the senior executives would get paid in the next years.

Meanwhile, the chief executive of Citigroup, Michael Corbat’s pay package rallied 27% to $16.5 million. Concerns were raised from some investors on how the bank has performed relative to the pay plan of the chief executive.

It has provided justification towards the new plan, and the bank considers the pay packages as fair. The biggest disagreement has been the net income record worth $17.2 billion since 2006. A strong performance was seen on profits from the bank, but the pay was is not in accordance with the current circumstances bank stock’s current circumstances, critics say. Declines in the stock price of 40% has led investors and shareholders to worry.

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Subsequently, Citigroup is likely in a steady position as it has passed last year’s stress test, and said it is confident in passing again this year. A good performance of the team should be awarded, but work still needs to be done, Michael O’Neil said.   

Citigroup’s peers, JP Morgan and Bank of America gained raise in their pay. BAC’s CEO, Brain Moynihan’s pay rallied 25% to $16 million, while Jamie Dimon of JP Morgan acquired a third of the increase to $27 million. However, other competitors of the bank like Goldman Sachs and Morgan Stanley chief executives’ pay were trimmed amid rough previous year.

Issues of the corporate governance have seen growing since the financial crisis. Thus, speculations started to arise as to how the executives have received big money in operating these institutions. The Breaking up of large tanks was another issue that stems from the critics. The big guns on research firms have been closely watched after the financial crisis as to how much money is flowing in bonuses and distributions on dividends.