The matter will be resolved in the next few months as the current chairman, Mike O'Neill, reaches 72, the company's retirement age for directors. Citigroup CEO Mike Corbat will soon know if he will be taking on the additional duties of chairman or working for a new boss.
"The change in the chairman is the biggest corporate governance decision at Citigroup in six years," said analyst Mike Mayo of Wells Fargo. "That's important given what we see as worst-in-class returns, efficiency and stock market valuation." Citigroup, the third-biggest U.S. bank by assets, reports third-quarter results on Friday. Investors will be watching its progress toward cost efficiency and return on equity targets, as well as revenue from its big U.S. credit card business.
Six years ago O'Neill became chairman and shortly after he led the board to replace then-CEO Vikram Pandit with Corbat.
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