Monday, March 01, 2010

The Activist Investor: Citigroup

By Eric Jackson

RealMoney Contributor

3/1/2010 8:15 AM EST

Click here for more stories by Eric Jackson

On Friday, Citigroup (C - commentary - Trade Now) announced a few more changes to its board of directors. Former Xerox (XRX -commentary - Trade Now) CEO Anne Mulcahy is not going to stand for re-election to the board this spring, nor is former AT&T (T -commentary - Trade Now) CEO C. Michael Armstrong. Citi had already announced in January that MIT professor John Deutch wouldn't be seeking re-election. Instead, Citi will put forward former Mexican President Ernesto Zedillo.

Citi's board has been under fire since its government bailout. After all, how could what was once (and not too long ago) the dominant global bank be reduced to such a sorry state, requiring massive government and taxpayer intervention to keep it afloat?

In spring 2008, prior to Bear Stearns'collapse, Citi's board consisted of the following members:

  • Armstrong (71), a Citi director since 1989
  • Alain Belda (66), CEO of Alcoa (AA -commentary - Trade Now), a Citi director since 1997
  • Deutch (71), a Citi director since 1996 (also 1987-93)
  • Sir Win Bischoff (68), Citi director since 2007, but Citi executive since 2000
  • Andrew Liveris (54), CEO of Dow Chemical (DOW - commentary - Trade Now) and Citi director since 2005
  • Mulcahy (56), a Citi director since 2004
  • Ken Derr (73), former CEO of Chevron (CVX - commentary - Trade Now) and Citi director since 1987
  • Roberto Hernandez (67), former CEO of Banco Nacional de Mexico and Citi director since 2001
  • Citi CEO Vikram Pandit (53)
  • Now-Chairman Richard Parsons (61), who has served on Citi's board since 1996
  • Judith Rodin (65), president of the Rockefeller Foundation
  • Robert Rubin (71)
  • Robert Ryan (66), former CFO of Medtronic (MDT - commentary - Trade Now), a Citi director since in 2007 (also a Citi executive 1975-82)
  • Franklin Thomas (75), Citi director since 1970
As of today, fewer than half (Belda, Liveris, Pandit, Parsons, Rodin and Ryan) remain on the board.

The new directors include.....


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