Citi directors looking to replace chairman: report

A Citibank sign is seen on the side of a branch in New York, October 8, 2008.
REUTERS/Lucas Jackson

(Reuters) - Some directors on the Citigroup Inc board are considering a move to replace chairman Win Bischoff as they are dissatisfied with the company's performance, the Wall Street Journal said, citing people familiar with the matter.

It wasn't clear how many of Citigroup's directors were advocating a change, and it was possible the board would opt to stick with its current chairman, the paper said.

"I'm not sure it will happen, but it seems likely" that Bischoff will be replaced, the paper quoted one person familiar with the situation.

However, the paper quoted a Citigroup spokeswoman as saying: "Any report that the board is searching for a new chairman is false."

One leading candidate is Richard Parsons, Time Warner Inc chairman and a member of Citigroup's board, the paper said.

The possible chairman switch, still in the discussion phase, reflects a rising sentiment among some Citigroup directors that they'd prefer to have an outsider running the board, the paper said, citing people with knowledge about the matter.

One potential wild card is whether President-elect Barack Obama would ask Parsons, part of Obama's transition economic advisory board, to take a prominent role in his cabinet, the paper said.

The discussion of replacing Bischoff comes as the New York-based company's board is adopting an increasingly assertive stance toward overseeing chief executive officer Vikram Pandit and his team of executives, the paper said.

It said some directors have grown concerned Bischoff hasn't been exercising adequate oversight.

Housing and credit market turmoil has forced Citigroup to post its fourth straight quarterly loss, reflecting billions of dollars in write-downs and credit losses.

Parsons, Citigroup's lead outside director, recently has involved himself more heavily in monitoring its internal operations, according to people familiar with the matter, the paper said.

It said Parsons has been summoning top executives throughout the company to gauge their opinions on its operations, and then briefing his fellow directors on the conversations.

Parsons was meeting or talking by phone with executives several times a week and some have been complaining to him, the paper said.

Citigroup could not be immediately reached for comment by Reuters.

(Reporting by Supantha Mukherjee in Bangalore; Editing by Jerry Norton)