The Treasury Department said on Tuesday it voted the 7.7 billion shares it owns in Citigroup Inc at the bank's annual meeting, including for a proposal to have a reverse share split.
The Treasury acquired the shares when it pumped bailout money into Citigroup and reiterated it was a reluctant shareholder (that) intends to dispose of its TARP (Troubled Asset Relief Program) investments as quickly as practicable.
The Treasury said it backed all 15 of the Citigroup directors who were nominated and voted in favor of two Citigroup proposals. One permits the company to issue common shares to settle $1.7 billion of common stock equivalent awards to employees in lieu of cash incentive pay.
The other proposal that Treasury supported was one to permit a reverse stock split. The Treasury said that will address the fact that the company has a much larger number of shares outstanding than is necessary to ensure adequate trading liquidity.
The Treasury said it voted proportionally on a say on pay resolution that would give shareholders the right to cast an advisory vote on whether they approve Citigroup's 2009 executive compensation.
The Treasury strongly supports the concept that shareholders should have the ability to vote on executive compensation, and included the 'say on pay' requirement in its regulatory reform legislative proposal, the Treasury said in a statement.
(Reporting by Glenn Somerville; Editing by Andrea Ricci)