John Havens

Citigroup Inc. (C) is shelving an unusual executive profit-sharing plan that raised hackles with investors, said people familiar with the company.The decision to allow the plan to expire next year comes after Michael E. O'Neill, the New York company's chairman, met with numerous Citigroup shareholders in a bid to avoid a repeat of an embarrassing defeat last spring in the shareholder-advisory vote known as "say on pay."Citigroup was alone among major lenders in having its plan rejected by shareholders. The defeat helped pave the way for the departure of Vikram Pandit, who as chief executive in 2011 saw his compensation rise to $14.9 million from the $1 he received annually while the company repaid $45 billion of federal bailout funds.The decision to allow the expiration of the incentive plan wasn't driven by that defeat, said the people familiar with the company. But the plan emerged as a sticking point in Mr. O'Neill's conversations with shareholders and corporate-governance experts, ...

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