Will Angry Citi Shareholders Seek Directors' Removal?

Citigroup Inc (NYSE:C) reported on Friday that it sustained a net loss for the 2008 first quarter of $5.1 billion and that it took $6.0 billion in pre-tax write-downs as a consequence of sub-prime mortgage losses.

Our financial results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions. During the first quarter, valuations of our sub-prime related exposures in fixed income markets and leveraged finance assets have further declined and credit costs in our consumer lending businesses have increased. [Citi CEO Vikram Pandit]

Mr Pandit then sought to reassure investors that Citi is not entering into a period of permanent decline by adding the following comments:

Despite the negative factors in the broader markets, we continue to see strong momentum throughout the organization with robust volumes in many of our products and regions.

This statement, however, might not go far enough to satisfy the demands of angry shareholders, especially large institutional investors, for accountability from the bank’s Board of Directors.

Just this past week, shareholders of Washington Mutual Inc (NYSE:WM) forced the resignation of one WaMu Director, and they were nearly successful in voting down the reelection of several other WaMu board members.

The strife at WaMu could portend a similar fight at Citi.

NewsVisual created an IntellectSpace Knowledge Map that illustrates key past and current corporate connections of the members of Citi’s Board of Directors in order to assess their ability to retain their on places on the board as well as to assess their abilities in being able to the bank attain a turnaround.

click to enlarge

The Knowledge Map shows that the bank’s current Directors have a considerable degree of involvement with other corporations.

The most noteworthy board member is, perhaps, Citi Chairman Robert E Rubin. Mr Rubin is a former United States Secretary of the Treasury during the Clinton Administration. And he frequently appears on TV news programs as an expert on the financial markets.

It’s also worth mentioning that nine of the Citi Directors depicted in the Knowledge Map are the Chairman of other corporate boards.

For example, Citi Director Richard D Parsons is the Chairman of Time Warner Inc, Citi Director Alain Belda is the Chairman/CEO of Alcoa Inc, and Citi Director Anne Mulcahy is the Chairman/CEO of Xerox Corporation.

To view the remaining Citi Directors and to see the details of their business connections, click here for an interactive and fuller version of this IntellectSpace Knowledge Map.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Comments

[User 54169]

THIS BOARD IS A JOKE ANYWAY YOU SLICE IT. I MEAN A REAL, REAL JOKE. IT HAS BEEN FOR MANY YEARS. IF YOU ANALYZE EACH PERSON, THEIR BACKGROUND AND AFFILIATIONS IT'S CRIMINAL TO HAVE THIS CROWD "DIRECTORS" OF A COMPANY LIKE CITIGROUP. RUBIN IS THE WORST CULPRIT WITH THE BUCKS HE HELPS HIMSELF TO.

[User 54169]

THE BOARD IS A DISGRACE AND HAS BEEN FOR MANY YEARS. WHO DO THEY THINK THEY ARE KIDDING.!