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Citigroup names new chairman, keeps post separate from CEO

Reuters  |  NEW YORK 

By David Henry

NEW YORK (Reuters) - The board of Inc on Monday named one its independent members to be its new chairman, keeping the post separate from

John C. Dugan, 63, a former regulator and former to the board who became a director last year, will succeed Mike O'Neill on Jan. 1, the company said. O'Neill recently reached the board's retirement age of 72 and was due to leave in April.

Corbat, 58, had not asked to be considered for the job of after concluding that it would be best to separate it from his management job, a person familiar with his view said. Corbat and O'Neill had discussed the question over the past year, said the person, who declined to be quoted discussing the private conversations.

As chairman, O'Neill led directors to name Corbat as in October 2012 when the board dismissed from the job.

The CEOs of big rivals and of America Corp also serve as chairmen of their boards. But the dual assignments have been challenged by shareholders who believe board chairmen should be independent of the company executives they are assigned to oversee.

The change in the leadership of the Citigroup board comes as the bank, the third-biggest U.S. bank by assets, struggles to catch up with the financial performance of its peers after it suffered massive losses in the 2007-2008 financial crisis, took government bailouts and had to sell assets. [L2N1WQ25R]

Corbat is pushing the bank to reach 2020 financial targets he laid out last year after missing targets he set in 2013.

In the statement from Citigroup, Dugan said, "I am confident in and his team's ability to continue to improve returns for its shareholders."

Corbat said, "Citi and our shareholders have been well served by having an independent "

Dugan began advising the Citigroup board in 2015 while he was a at Covington & Burling, where he headed the firm's group.

Dugan was from 2005 to 2010. The U.S. government agency supervises national banks and federal branches of foreign banks. After graduating in 1981 from Harvard School, Dugan had worked in a variety of government posts in and at from 1993 to 2005.

O'Neill's decision to leave a few months early will allow Dugan to lead the board as it makes decisions on executive pay for 2018 and sets views on shareholder issues ahead of meeting in April.

(Reporting by in New York; Editing by Susan Thomas)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 00:35 IST