Citigroup has expanded its board, announcing the additions of two new directors.
The bank, which has been aggressively working to reduce costs and work through a morass of soured assets, added Gary M. Reiner, a former chief information officer for General Electric, and James S. Turley, a former chairman and chief executive of the accounting firm Ernst Young, to its 11-member board. The new members will increase the size of the board to 13.
Michael E. O’Neill, the bank’s powerful chairman who led the ouster of Vikram S. Pandit last year, had hinted about a board revamp during a panel discussion last month. At the time, he said the bank was considering increasing the number of board members.
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The two new directors will contribute “considerable insight to the board as Citi continues to leverage its unmatched global strengths,” Mr. O’Neill said in a statement on Monday.
The moves are the first substantive changes to the board’s composition under the leadership of Michael L. Corbat, who took over as chief executive after the abrupt exit of Mr. Pandit in October.
Since taking over the reins, Mr. Corbat has promised to continue repositioning the bank to focus on its core businesses while shedding less profitable business units. That cost-cutting began under Mr. Pandit, who helped steer the bank through one of its most tumultuous chapters in its history when a flailing Citigroup received a $45 billion federal lifeline.
The additions on Monday are also playing out amid renewed attention from shareholders on corporate governance as investors zero in on how the dynamics of the board room affect broader bank performance. The issue was thrust into the spotlight this year during a closely watched vote at JPMorgan Chase over whether to separate the jobs of chairman and chief executive — roles that Jamie Dimon, the bank’s influential leader, has held since 2006.
The composition of Citigroup’s board shifted in April, when Lawrence R. Ricciardi, who had top jobs at I.B.M. and RJR Nabisco, retired as a director after reaching 72.
Mr. Turley, who led Ernst Young from 2001 until last week, will bolster the board’s auditing and operations insight, Mr. O’Neill said in the statement.
“Mr. Turley’s extensive background at Ernst Young and his leadership in the field of auditing make him an excellent addition to the board and specifically to our audit committee,” Mr. O’Neill said.
Mr. Reiner, who is also on the board of Hewlett-Packard, will “lend his expertise to key priorities across the company, including increasing productivity and helping to oversee important initiatives in our operations and technology functions,” Mr. O’Neill said.
Article source: http://dealbook.nytimes.com/2013/07/08/citigroup-adds-two-new-directors/?partner=rss&emc=rss