"Dick Parsons should go," Mayo said before a gathering of hedge fund managers last week in New York. "For Citigroup, it is all part of a larger puzzle regarding the lack of corporate governance."
His comments come amid reports that current chairman Richard Parsons is planning to step down. Parsons has been chairman since 2009 and has overseen the bank's restructuring since the crisis. However, critics have argued that Parsons was the wrong choice as Chairman, as he was a director on the board as early as 2006 when the bank was barreling towards crisis.
Mayo said his rationale for pushing for Parsons' ouster is tied to his long tenure at the firm. Parson's was chairman of Citigroup's compensation committee from 2002 to 2007 when then CEO Charles Prince and Chairman Robert Rubin earned $180 million leading up to the financial crisis, Mayo said."The CEO of Citigroup got paid more than anyone else in the past decade, during a time when the stock performed the absolute worst," Mayo argued. "That's no capitalism. That's entitlement." Mayo, who recently authored a book "Exile on Wall Street", is no fan of Citigroup. When CEO Vikram Pandit was appointed co-chair at the World Economic Forum at Davos recently and spoke at a panel on the reshaping of a global financial system, Mayo quipped, "Asking Vikram Pandit about the crisis in capitalism is like asking Alec Baldwin about airplane etiquette." In a Feb.23 report, Mayo calls for a series of changes at Citi, starting with a replacement of Parsons as a necessary first step to "help better evolve Citi's culture, controls, conduct, costs, conservatism, and communication." "If a change were to occur, our hope would be that the new person would be more than a figurehead, acting as somebody who could better "mind the store" and act as a true agent on behalf of investors," he wrote. Ideas for a new chairman range from current Citi director Michael O'Neill, ex-Bank of New York CEO, Robert Kelly and Ex Wells Fargo CEO Dick Kovacevich. Ex-IBM CEO Sam Palmisano, Bill Gates, and chairman of Hewlett Packard, Ray Lane were some suggestions from CLSA tech analyst Ed Maguire.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV