Parsons Gets Key to the Citi

Embattled Citigroup announced todaythat its board chairman, Sir Win Bischoff, will retire next month.  He will be replaced by Richard Parsons, who is currently a board member and Lead Director.  Vikram Pandit will remain CEO.

Mr. Parsons is best known as the former head of Time Warner.  He was one of the first African-Americans to reach the top ranks of the corporate world.  He has also been politically activein both parties, working with Nelson Rockefeller, Gerald Ford, and Rudy Giuilani, and more recently as an advisor to Barack Obama.

This is probably a good move for Citi.  Sir Win does not appear to have been very effective as a leader – though, in his defense, it’s not clear any one human can lead a polyglot like Citigroup.  Parsons took over Time Warner at a difficult time and successfully stabilized the company.  Citigroup could definitely use some stabilizing right now.

The press releasefrom Citi has a curious little quirk that might be revealing.  Consider this paragraph:

“Mr. Parsons, 60, is an experienced and accomplished corporate leader. Previously, Parsons served as Chairman and Chief Executive Officer of Dime Bancorp, Inc., where he successfully worked with government regulators to enable the bank to continue as a private sector enterprise. He has also previously served in the positions of President, Chief Executive Officer and Chairman at Time Warner, where he led the company’s turnaround after its merger with America Online in 2000. Prior to that, Mr. Parsons was managing partner of the New York law firm Patterson, Belknap, Webb & Tyler, and held various positions in the state and federal government, including as counsel for Nelson Rockefeller and senior White House aide under President Gerald Ford.”

Press releases like this are carefully phrased by public relations professionals to communicate the message the company wants to send.  Nothing is accidental.  With that in mind, note the very first thing they say about Parsons.  It’s not his Time Warner experience, his legal experience, or his political experience.  All that comes later.

Instead, Citi chose to highlight the role Parsons played at Dime Bancorp.  Was this because it was most recent?  No, Parsons left Dime in 1995.  Citi seems to think it significant that Parson’s main accomplishment at Dime was “to enable the bank to continue as a private sector enterprise.”

Hmmm, is someone concerned that Citigroup will not continue as a private sector enterprise?  And is it a coincidence that two days after the Obama inauguration, a supporter and advisor is being installed at the top of one of the nation’s largest banking institutions?  I think there may be more going on here than just a reshuffling of leadership.

Disclosure: no positions