Revamping to Nowhere: Citigroup’s Latest Board Shuffle
Citigroup is giving its board a makeover under the watchful eye of Chairman Richard Parsons, the so-called “change agent.” Yawn. Stretch. Rub your eyes. Is this really the exciting shift that the financial world has been waiting for?
The Nominee Slate: More of the Same?
So, here’s the list of nominees, carefully researched and thoughtfully curated. Or, more likely, as carefully curated as Spencer Stuart can manage over the next six months while they pocket a hefty fee for talking to the same old recycled names. In fairness, any other big-name executive search firm would likely go through the same motions.
But we’re not buying the idea that nobody will want to take a seat at the table, despite the obvious pitfalls. As one veteran search consultant always says, “We never have trouble finding candidates for major CEO and board positions.” So let’s take a closer look at the potential roster.
The Board Nominees:
Paula Rosput Reynolds
After her time at AIG and Delta, Paula is prime for more board-level responsibilities, particularly in turnarounds, sales, and bankruptcies. She knows the ropes.Bob Nardelli
With his history as a reliable bag carrier for private equity and strong operations experience, Nardelli is the guy who knows how to ask for loans and sales—exactly what Citi’s board will need in the upcoming years. As a sitting CEO, his company might not be experiencing explosive growth right now, but that means he has time to contribute his expertise.Jeffrey Immelt
Why not? After presiding over GE Capital’s collapse, Immelt surely knows how to avoid future financial disasters. And if anyone thinks he’s too busy at GE, well, that may soon change if that stock keeps sliding toward bargain-bin territory.Pete Correll
The last CEO to take a big company private without losing his shirt, Pete Correll pulled off Georgia-Pacific’s sale to Koch Industries in 2006. His track record speaks for itself.Ken Chenault
After steering American Express through turbulent waters, Ken Chenault’s ready for a new challenge. A seasoned financial services leader, he knows the ins and outs of navigating complex financial environments. American Express may be “always open,” but can Citi stay open in the face of these challenges?Paul O’Neill
The former Treasury Secretary under George W. Bush and retired CEO of Alcoa, O’Neill brings much-needed government insight. Plus, in the spirit of bipartisan cooperation, it’s time to throw a bone to the Republicans.
The Alternates: In Case Things Don’t Work Out
If any of the nominees above aren’t available, we’ve got some backups in mind:
John Snow
After handling the Cerberus/Chrysler bailout, Snow has experience with navigating major corporate crises.Dick Grasso
Grasso’s expertise in lucrative pay packages could come in handy—particularly in these times when compensation practices are under intense scrutiny.
So, What’s Next for Citi?
Add in a few familiar faces from the banking industry, and voila, Citigroup has a brand new slate of board members ready to steer the ship… or at least that’s the plan. The truth? Whether these changes actually help Citi or not is anyone’s guess. The bank could disappear, survive to fight another day, or be run as a quasi-private enterprise by the government. One thing’s for sure: Nobody really knows. Or, if they do, they’re not telling the public.