Citi Says Revlon Accountability Review Found No Clawbacks Needed

Citigroup Inc. said a full review conducted after the lender mistakenly sent $900 million to a group of investment firms concluded the bank didn’t need to claw back any pay from executives.

The company made its employment and compensation decisions based on recommendations in a “full accountability review” by an outside law firm, Chairman John Dugan said during the firm’s annual meeting on Tuesday.

Citigroup was serving as administrative agent on a loan to Revlon Inc., and mistakenly sent almost $900 million to lenders of the cosmetics giant when it was trying to make an interest payment. While some recipients chose to return the money, the bank has been locked in an embarrassing court battle to try to recover the rest.

“Our response to that situation has been consistent with the advice we received,” Dugan said, adding that Citigroup “appropriately held management accountable without the need for clawbacks.”

Also at the meeting, Citigroup shareholders approved the firm’s slate of directors as well as its proposed executive-compensation plan. They shot down a proposal that would have required the board to conduct an audit of how the lender’s actions affect communities of color.

The vote on the racial-equity audit came just one day after Citigroup updated investors on its $1 billion commitment to help close the racial wealth gap in the U.S.

“Underpinning our work to promote racial equity is a commitment for us to understand what it takes to be an anti-racist institution, and making sure we maintain a culture that not only reflects, but also cherishes, the diversity of the communities we serve,” Chief Executive Officer Jane Fraser said during the meeting.

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.