BOSTON, Nov. 14, 2012 /PRNewswire-USNewswire/
-- Trillium Asset Management LLC, on behalf of the Benedictine
Sisters of Mount St. Scholastica, along with the AFSCME Employees
Pension Plan recently filed a shareholder proposal with
Citigroup Inc. (NYSE: C) asking the company's board of directors to
explore a possible separation of one or more of its business
units.
Citigroup's shares have consistently traded below book value
since late 2008, it failed the Federal Reserve's CCAR stress tests
in March 2012, and regulators
continue to forbid it from returning significant capital to
stockholders due to concerns over its financial stability.
"Despite some positive steps taken since the start of the
financial crisis, we believe Citigroup's progress toward
simplifying and de-risking its business has been slow and
incomplete. Citigroup boasts many attractive attributes, but
remains burdened by excessive complexity, as well as the stigma and
risks associated with being named a 'too big to fail'
institution.", said Matthew Patsky,
CEO of Trillium Asset Management. "These factors could threaten
stockholder return through breakdowns in risk management, increased
regulatory scrutiny, higher litigation expense, greater capital
requirements and poor public perception, among other
challenges".
The resolution specifically requests that the Board of Directors
appoint a committee, composed exclusively of independent directors,
to explore extraordinary transactions that could enhance
stockholder value, including the separation of one or more of
Citigroup's businesses. The resolution also requests that the
committee publicly report on its analysis to stockholders no later
than 120 days after the Citigroup's 2013 Annual Meeting of
Stockholders.
"There is a gap of almost $50
billion between what Citi says its assets are worth and what
the market is saying," said Lee
Saunders, Chairman of the AFSCME Employees Pension Plan's
Board of Trustees. "It is high time that the board gave
shareholders a plan for recovering this value."
At this time, the Board of Directors of Citigroup would best
serve their shareholders by studying the merits of various
strategic restructuring scenarios closely to determine the correct
path forward.
ABOUT TRILLIUM ASSET MANAGEMENT, LLC
Trillium Asset Management, LLC is the oldest independent
investment advisor devoted exclusively to sustainable and
responsible investing. With over $1
billion in assets under management, Trillium has been
managing equity and fixed income investments for high net worth
individuals, foundations, endowments, religious institutions, and
other nonprofits, since 1982. A leader in shareholder
advocacy and public policy work, Trillium's goal is to deliver both
impact and performance to its investors.
ABOUT the AFSCME Employees Pension Plan
The AFSCME Employees Pension Plan provides retirement benefits
for employees of the American Federation of State, County and
Municipal Employees, AFL-CIO, a public services employees union
with more than 1.6 million members who provide the vital services
that make America happen. With members in hundreds of different
occupations — from nurses to corrections officers, child care
providers to sanitation workers — AFSCME advocates for fairness in
the workplace, excellence in public services and prosperity and
opportunity for all working families.
The views expressed are those of the authors as of the date
referenced and are subject to change at any time based on market or
other conditions. These views are not intended to be a
forecast of future events or a guarantee of future
results. These views may not be relied upon as investment
advice. The information provided in this material should not
be considered a recommendation to buy or sell any of the securities
mentioned. It should not be assumed that investments in such
securities have been or will be profitable. To the extent
specific securities are mentioned, they have been selected by the
authors on an objective basis to illustrate views expressed in the
commentary and do not represent all of the securities purchased,
sold or recommended for advisory clients. The information
contained herein has been prepared from sources believed reliable
but is not guaranteed by us as to its timeliness or accuracy, and
is not a complete summary or statement of all available data.
This piece is for informational purposes and should not be
construed as a research report.
SOURCE American Federation of State, County and Municipal
Employees