NEW YORK (Reuters) - Citi Group (C.N) and hedge fund ValueAct Capital said on Thursday they would extend an existing information-sharing agreement for another two years through the end of 2021.
The agreement allows ValueAct, one of Citigroup’s largest shareholders, to engage with bank executives and directors on strategy, governance and planning matters, the firms said in a joint announcement.
Citi and ValueAct originally made the agreement in January after starting discussions in 2018 following fund investments in the bank.
In the statement, ValueAct President and Chief Investment Officer Mason Morfit said, “We have been very impressed with (Citigroup CEO) Mike Corbat and the entire management team ... Citi remains the top position in the fund and we have strong conviction in its long-term potential.”
Since becoming chief executive in 2012, Corbat has been trying to boost Citigroup’s return on equity and stock valuation, which lag other big U.S. banks.
Citigroup is the third-largest U.S. bank by assets. It had to shed many assets and close businesses to recover from losses in the 2007-2008 financial crisis.
Reporting by Elizabeth Dilts Marshall. Additional reporting by David Henry. Editing by Jason Neely and Steve Orlofsky