Arjuna Capital today withdrew its shareholder proposal on gender pay equity slated for Citigroup's proxy statement following news that the banking giant is committed to closing the pay gap for women and US minorities.
Filed Nov. 13, 2017, Arjuna's resolution called for a report, "omitting proprietary information, above and beyond litigation strategy or legal compliance, and prepared at reasonable cost, on the Company’s policies and goals to reduce the gender pay gap."
The Boston-based investment firm pulled the resolution following a blog post by Citi's Michael Murray, head of human resources, disclosing results from an internal study of US, Germany and UK operations that found women are paid 99 percent of what men earn and minorities are paid 99 percent of what non-minorities are paid.
Murray wrote that as part of the 2018 compensation cycle, Citi will make the appropriate pay hikes to close the gaps for women and US minorities and will continue to review compensation for pay equity.
Natasha Lamb, managing partner of Arjuna, sent a letter today to Rohan Weerasinghe, Citi's general counsel and corporate secretary, commending the bank for taking the steps "toward creating an inclusive and diverse culture and workplace."
Arjuna views Citi's announcement as a breakthrough announcement on gender pay equity since financial giants BankAmerica, American Express, MasterCard, JPMorgan and Wells Fargo rejected pay gap proposals at their 2017 annual meetings.
Hastings Group represents Arjuna.