Citigroup board names new chairman, keeps post separate from CEO

  • Written by  New times

The board of Citigroup Inc (C.N) on Monday named one of its independent members to be its new chairman, keeping the post separate from current Chief Executive Officer Mike Corbat.

John C. Dugan, 63, a former bank regulator and former lawyer to the Citigroup board who became a Citigroup director last year, will succeed Mike O’Neill on Jan. 1, the company said. O’Neill recently reached the board’s retirement age of 72 and was due to leave in April.

Corbat, 58, had not asked to be considered chairman after concluding that Citigroup’s current separation of the post from his management job is best, a person familiar with his view said. Corbat and O’Neill had discussed the question over the past year, said the person, who declined to be quoted talking about the private conversations.

As chairman, O’Neill led directors to name Corbat as CEO in October 2012 when the board dismissed Vikram Pandit from the job.

The CEOs of Citigroup big bank rivals JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) also serve as chairmen of their boards. But the dual assignments have been challenged by shareholders who believe board chairmen should be independent of the company executives they are assigned to oversee.

The change in the leadership of the Citigroup board comes as the bank, the third-biggest U.S. bank by assets, struggles to catch up with the financial performance of its peers after it suffered massive losses in the 2007-2008 financial crisis, took government bailouts and had to sell assets.

Corbat is pushing the bank to reach 2020 financial targets he laid out last year after missing targets he set in 2013.

In the statement from Citigroup, Dugan said, “I am confident in Mike Corbat and his team’s ability to continue to improve returns for its shareholders.”

Corbat said, “Citi and our shareholders have been well served by having an independent chairman.”

Dugan began advising the Citigroup board in 2015 while he was a Washington lawyer at Covington & Burling, where he headed the law firm’s financial institutions group

Dugan was Comptroller of the Currency from 2005 to 2010. The U.S. government agency supervises national banks and federal branches of foreign banks. After graduating in 1981 from Harvard Law School, Dugan had worked in a variety of government posts in Washington and at Covington & Burling from 1993 to 2005.

O’Neill’s decision to leave a few months early will allow Dugan to lead the board as it makes decisions on executive pay for 2018 and sets views on shareholder issues ahead of the Citigroup annual meeting in April.

Last modified onTuesday, 06 November 2018 07:53
Login to post comments
back to top

BEAMED BC-TV

Latest on Economy

Economy

Mozambique to host 12th U.S.-Africa Busi…

14 March, 2019 | Hits:1378

Johannesburg, South Africa (ADV) – Mozambique is s...

Economy

Aliko Dangote named richest person in Af…

05 March, 2019 | Hits:1604

Aliko Dangote, the Nigerian businessman and Presid...

Economy

Expert: Small fragmented African airline…

28 February, 2019 | Hits:1757

Like it has been the case in previous years, the g...

Economy

SKA infrastructure design complete

28 February, 2019 | Hits:2803

South African Science and Technology Minister Mmam...

Economy

Kenyan and Chinese firms secure geotherm…

28 February, 2019 | Hits:844

Ethiopian Electric Power (EEP) has signed a deal w...

Economy

South Africa stimulus package to create …

28 February, 2019 | Hits:1218

Transport Minister Blade Nzimande has announced a ...

Economy

eSwatini is facing an unprecedented econ…

28 February, 2019 | Hits:969

eSwatini’s economy probably contracted in 2018 and...

Economy

80% of women in low- and middle-income c…

27 February, 2019 | Hits:772

80 per cent of women in low- and middle-income cou...

Economy

South Africa - India trade relations dee…

27 February, 2019 | Hits:811

Two KwaZulu-Natal companies are on a mission to ex...

Economy

Closing Africa’s financing gap

27 February, 2019 | Hits:838

Toward the end of 2018, the United States merged e...

Economy

First China-Africa economic, trade expo …

27 February, 2019 | Hits:853

At least 1,000 African guests and traders will att...

Economy

Ethiopia moves to boost ease of doing bu…

27 February, 2019 | Hits:781

Ethiopia continues to work towards improving ease ...

Economy

US $7bn to be injected into infrastructu…

27 February, 2019 | Hits:799

South Africa is set to commit US $7bn over the nex...

Economy

Mozambique, Soliridad Southern Africa in…

26 February, 2019 | Hits:825

The National Institute for Standardization and Qua...

Economy

Mozambique, Soliridad Southern Africa in…

26 February, 2019 | Hits:862

The National Institute for Standardization and Qua...

Economy

Ethiopian Airlines to operate all-female…

26 February, 2019 | Hits:777

Ethiopian Airlines has announced that it has final...

Economy

Africa: The first African Digital Rail S…

26 February, 2019 | Hits:851

Cape Town, South Africa, 25 February 2019 - "Afric...

Economy

Tech startups in Sub-Saharan Africa to g…

26 February, 2019 | Hits:733

Tech startups from Sub-Saharan Africa markets to g...

Economy

IFC invests $15 million in Comoros telec…

25 February, 2019 | Hits:840

International Finance Corporation has made its fir...

Economy

MafAfrique to invest $7 Million in Tanza…

25 February, 2019 | Hits:825

Advisory and fund management group, MafAfrique, ha...

By Category

Local News

User Menu

About Us

Follow Us