Citi (C) To Shake-Up Board

The Financial Times reported that the Citi (NYSE: C) will finally undergo a shake-up. Citigroup is to restructure the board with the departure of long-standing members Kenneth Derr and Franklin Thomas. Those departures happen after the board has received much criticism for not being a good steward on behalf of Citi shareholders.

The FT said that both Kenneth Derr is a former CEO of Chevron (NYSE: CVX) , and Franklin Thomas, who used to run the Ford Foundation, could announce their retirements at Citi's annual meeting next month.

The departures of these two long-standing board members will give the new board chairman, Dick Parson, the opportunity to add new independent directors that will hopefully greatly improve governance and strengthen the bench on the board.

It is said that investors and regulators are believed to have applied pressure on Citi to get new people on the board instead of keeping the same old guard. Citi is looking for new directors with financial expertise.

In addition, the above board members leaving, it is rumored that former AT&T (NYSE: T) CEO, C. Michael Armstrong, may also resign from the board. Robert Rubin has already resigned and will formerly step down at this year's annual meeting and Sir Win Bischoff, who was replaced as chairman by Mr Parsons. By the way, Mr. Parsons is not new to the board as he has been on it for several years already. Hmm...

In the last two hours of trading, Citi has jumped over 10% and is now trading at $3.44.

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Citigroup Inc. (Citigroup) is a diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers.

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