For Immediate Release
Thursday, April 16, 2009
AFSCME Demands Accountability at Citigroup
Union urges Vote No on board members
AFSCME Citigroup Vote No Letter (PDF)
Washington, D.C. - At Citigroup’s Annual Meeting on Tuesday, April 21, the American Federation of State, County and Municipal Employees Pension Plan will urge shareholders to VOTE NO on the re-election of long-term members of the Audit & Risk Management Committee. Members of the committee include C. Michael Armstrong, Alain Belda, John Deutch, Andrew Liveris, Anne Mulcahy and Judith Rodin.
“Citi’s board failed to effectively manage risk, helping cause the company’s current instability,” said AFSCME President Gerald W. McEntee. “The accountability for risk management begins and ends with the committee. These members have to go.”
Citigroup, the largest recipient to date of the U.S. government bank bailout, suffered extraordinary losses due to the risky assets on its balance sheets which led to a tremendous loss in shareholder value. During the tenure of the Audit & Risk Management Committee there was a failure to protect shareholders from excessive exposure to credit, market, liquidity and operational risk.
“The committee failed to properly assess and control risks and protect shareholders. They are responsible for the need for government intervention,” added McEntee. “Citi needs a fresh start. It’s time for these long-time culpable directors to leave so that we can begin rebuilding the brand and credibility of this financial institution.”
AFSCME’s Vote NO campaign has gained significant momentum among shareholder advisory companies. RiskNetrics Group Inc., Egan-Jones, Glass Lewis and Proxy Governance are also recommending that Citigroup Inc. shareholders vote against electing some current and former Audit & Risk Management committee members, citing poor risk oversight.
AFSCME is the largest union for workers in public service with 1.6 million members nationwide. AFSCME members’ retirement assets are invested by public pension systems, with combined assets totaling more than $1 trillion.
Rich Ferlauto, AFSCME’s Director of Pension and Policy will be attending the Citigroup shareholder meeting on Tuesday, April 21, and is available for interviews. Please contact Cheryl Kelly at 202-429-1145.
