Citi Shareholders Revolt, to Little Effect

"Where does that go?" he asked to chairman Parsons.

The shareholder described the director elections as "very similar to the one they held in Cuba," where longtime dictator Fidel Castro passed on power to his brother, Raul, after falling into ill health.

Another shareholder proposal, which did not pass, suggested that director seats should have two nominees, so that director turnover would happen more quickly if shareholders became "dissatisfied with the results of their policies and/or company performances," according to written commentary on the proposal.

Citi, under pressure from the government and investors, has been revamping its board of directors to include more members that have specific banking and financial experience.

Citi's board, in the wake of the company's multibillion losses, have been blamed for being asleep at the wheel while the company forayed into risky investments and loans that have become illiquid in the banking crisis that has gripped the economy over the past year.

Five directors have since stepped down from their positions, while four new directors, including former executives of US Bancorp (USB) and Bank of Hawaii (BOH) have joined its ranks.

Shouts and cheers from the audience greeted these changes, while one shareholder in particular yelled, "Thank God you're gone!" in referring to former senior advisor and director Robert Rubin's departure.

Large pension shareholder, the American Federation of State County and Municipal Employees, or AFSCME, urged Citi shareholders to vote against re-electing six other directors.

Smaller individual shareholders also expressed disinterest in Citi's board.