{"id":107,"date":"2007-11-10T21:11:49","date_gmt":"2007-11-11T04:11:49","guid":{"rendered":"http:\/\/systematic.hrblogs.org\/2007\/11\/11\/succession-planning-advice-now-from-shareholders\/"},"modified":"2010-02-09T08:08:00","modified_gmt":"2010-02-09T15:08:00","slug":"succession-planning-advice-now-from-shareholders","status":"publish","type":"post","link":"https:\/\/blog.andyscherer.com\/?p=107","title":{"rendered":"Succession planning advice, now from shareholders"},"content":{"rendered":"

Citigroup has seen it’s stock drop some 30% in the last month due to ‘exposure’ related to subprime mortgage debt issues. Last weekend, the CEO, Chuck Prince stepped down as a direct result of the losses. Prince Alwaleed bin Talal bin Abdul Aziz al Saud owns about three and a half percent of Citigroup. In an interview for Fortune<\/a>, Prince Alwaleed comments:<\/p>\n

“It is a pity what is happening, but I hope that a big lesson is learned in the board of directors and the management of Citibank. <\/em><\/p>\n

Q:<\/strong> What is that lesson specifically? <\/em><\/p>\n

A:<\/strong> The lesson is that, No. 1, this management has to be at the highest class possible. No. 2, they have to have a succession plan. You can’t have a company that size without a [successor] ready. And No. 3, you need a professional who has run a bank.”<\/em><\/p><\/blockquote>\n

Fascinating to see succession planning highlighted as a take-away for the board in light of write-offs approaching US $15 billion<\/em>, yet I wonder how realistic it is for a company like Citigroup (or Merril Lynch, who are in the same position and presumably courting some of the same candidates) to have someone- internal or external – primed and ready to step up when the going gets weird. Jockeying for the top can be such a socio-political struggle that I personally can’t imagine modeling a plan to contain it.<\/p>\n

So anyway, the job is apparently still open if anyone’s interested. Didn’t see it listed on careers.citigroup.com<\/a>, though.<\/p>\n