As our housing market shows slow signs of recovery, many lenders are figuring new ways to overcome losses and Citi is doing just that. At the annual shareholders meeting in April new members will be announced to Citi’s board.
Many financial experts have criticized this institutions board members even before the economic crisis began in late 2007. Back in 2003, Corporate Library studies showed that Citi had the worst board out of over 1,500 firms that were evaluated. Corporate Library is a research group that studies corporate governance and executive compensation data.
At the meeting Citi plans cut the number of board directors down from 17 to 15, said a person familiar with the matter. Three members are supposedly stepping down from their positions while one new member is added. Former president of Mexico, Ernesto Zedillo is to become a new member of Citi’s board. Ernesto who has previously worked for Mexico’s central bank was also president of the country from 1994-2000.
The three members that are leaving the board and are not running for re-election in April are:
Anne Mulchay, board member since 2004, said she is not seeking re-election this coming April.
Michael Armstrong, who has been on the board since 1989, is also not running for re-election.
John Deutch, member since 1996, also said he will not be running for re-election.
Citigroup is now to restructure it’s board in attempt to improve their standings after the companies horrible performance the past couple years. The institution has been rescued by the government already three times since our economic crisis began. Although Citi has repaid all of the funds they owe to the US, the federal government still is in possession of 7.7 billion of the firm’s shares.
Citi is one of the world’s largest financial servicing companies, and holds accounts for approximately 200 million customers.