Citigroup’s Rubin To Step Down As Chairman
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Citigroup Inc. said that the former U.S. Treasury Secretary, Robert Rubin, will give up the title of chairman of the board’s executive committee, while keeping his role as senior counselor at the biggest American bank by assets.
Mr. Rubin, who turns 70 this week, will remain a director, Citigroup said yesterday in a statement on its Web site. The New York-based company eliminated the executive committee and shifted its responsibilities to the nominating and governance committee led by the chairman of Time Warner Inc., Richard Parsons.
A former chief executive officer of Citigroup, Sanford “Sandy” Weill, hired Mr. Rubin as chairman of the executive committee in October 1999, three months after he left President Clinton’s administration. The seven-member committee acted on the board’s behalf between meetings, and Mr. Rubin served as interim chairman for a month last year after former CEO Charles “Chuck” Prince resigned.
Mr. Rubin has been criticized by investors including Smith Asset Management’s William Smith for collecting more than $150 million in pay in a decade while failing to steer Mr. Prince away from subprime mortgage securities that led to $17.4 billion of net losses in the past three quarters.
