Citigroup Inc. confirmed its quartet of nominees for director slots at next month's annual meeting, with the names including former Philadelphia Fed chief Anthony Santomero.
The other three names — former U.S. Bancorp chief executive Jerry Grundhofer, former Bank of Hawaii Corp. CEO Michael O'Neill and William S. Thompson, former co-head of bond-giant Pimco — were reported last week as likely candidate as part of the overhaul of the company's board.
The changes follow months of intensifying pressure from federal officials, who have been pushing new Citigroup Chairman Richard Parsons to oust some longtime directors and recruit new ones. Last month, the U.S. government agreed to expand its stake in Citigroup to as much as 36% of the outstanding shares. As part of that deal, the board agreed to be composed of "a majority of new independent directors as soon as feasible."
Santomero, who resigned as Philly Fed president in 2006 and has most recently been a senior advisor at consultancy McKinsey & Co. He was a finance professor at the Wharton School of the University of Pennsylvania, experience which Citi was reportedly seeking to add to the board.
Shareholders will vote on the nominations at the company's April 21 annual meeting.
Parsons said Monday the candidates will be "great stewards for Citi as it navigates the ongoing challenges in the present environment and works to restore profitability."
The board will have 14 members after the annual meeting. Of the 15 current directors, three have said they won't stand for re-election. Two who have reached the board's retirement age of 72 will step down by the meeting date. Parsons added the board will consider future additions.
The 15-person board came under fire from regulators, shareholders, employees and even some top Citigroup executives for failing to adequately oversee the company as it took on greater risk. That set the stage for net losses totaling more than $37 billion in the past five quarters.
Shares gained another 7.3% premarket to $1.90. The stock has doubled since March 5, when it fell below $1 for the first time. The stock is still down 73% this year.
