In a recent development, the East London employment tribunal rejected a wrongful dismissal lawsuit filed by Szabolcs Fekete, a senior financial-crime professional previously based in London. The tribunal's decision underscored Citi's expectation of honesty from its employees, further strengthening the bank's stance on integrity and policy adherence.
Fekete was dismissed by Citi in November 2022 following a suspicious expense claim made during a three-day business trip to Amsterdam. His claim included two coffees, two sandwiches, and a pasta pesto and bolognaise meal, suggesting consumption by two people. This violated Citi's expense-management policy, even though the expenses fell within the €100 daily limit.
Citi’s ethics office initiated an internal investigation into the matter. Initially, Fekete denied sharing the meal but later confessed to doing so. Fekete defended his actions at the tribunal citing personal circumstances but was found evasive during cross-examination.
The tribunal's decision to reject Fekete's wrongful dismissal lawsuit reaffirms Citi's commitment to uphold its policies and maintain a high standard of ethics among its employees.
While this case has been a focal point, it's also worth examining Citi's overall financial standing. According to InvestingPro data, the company has a market cap of 78.57B USD and a P/E ratio of 6.45, which indicates that it is trading at a low earnings multiple. This aligns with one of the InvestingPro Tips that the company's valuation implies a poor free cash flow yield.
Interestingly, Citi has managed to maintain dividend payments for 13 consecutive years, despite some financial challenges. The bank's dividend yield as of 2023 was 5.12%, showing a commitment to return profits to shareholders. However, there is a note of caution from InvestingPro Tips, warning that poor earnings and cash flow may force dividend cuts in the future.
Lastly, it's important to note that the company's stock price movements have been quite volatile. The 1 Year Price Total Return as of 2023 was just 0.12%, indicating a challenging period for investors.
These insights from InvestingPro provide a broader perspective on Citi's financial health and market performance. For more detailed analysis and tips, consider subscribing to InvestingPro, which offers a wealth of additional information and insights.
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