NEW YORK (Reuters) - Citigroup is to drop two senior board members, the Financial Times reported on Thursday, clearing the way for its incoming chairman, former Time Warner Inc Chief Executive Richard Parsons, to clean house.
Kenneth Derr, a former chief executive of Chevron
Citi declined to comment.
The bank named Parsons, 60, as chairman on Thursday, succeeding Sir Win Bischoff, 66, who will retire from Citigroup later this year.
Parsons said in a statement that further board departures were anticipated, adding he will reconstitute the board's membership "as quickly as possible."
Both Thomas and Derr, who have been on the board of Citi and its predecessor companies for a combined 59 years, will be at or above the age of retirement for Citi directors -- 72 -- this year, the paper reported.
Thomas is 73 and Derr, who sits on the influential nomination and compensation committees of the board, turns 72 this year, it said.
Michael Armstrong, 70, a former chief executive of AT&T, the telecoms group, is another director believed to be considering stepping down from the board, the FT said.
Citi's board has come under immense pressure as the New York-based bank has repeatedly sought government relief to salvage the core of what was once the largest U.S. bank, only to see markets pummel its stock, raising doubts about its survival.
In late November, the day after the government stepped in to rescue Citi with an injection of $20 billion and a plan to shoulder most of the potential losses on $306 billion of toxic assets, the New York Post said that "they need to go."
In an editorial, the Post called for all of the directors to be removed and the Wall Street Journal said most, including Derr, Thomas and Parsons, did not deserve to remain.
Citigroup's losses have stemmed from tens of billions of dollars of writedowns on everything from subprime mortgage bonds to loans funding leveraged buyouts.
Executives have struggled to right the ship and the bank last week said it will move assets it wants to sell or wind down into a separate unit. It also agreed to sell a controlling stake in its Smith Barney retail brokerage to Morgan Stanley
Bischoff will stay on the bank's board until its annual meeting later this year.
His departure follows the recent exit of former U.S. Treasury Secretary Robert Rubin, a senior counselor to the bank, who also does not plan to remain on the board.
Citigroup shares closed Thursday down 56 cents, or 15.26 percent, at $3.11. They remain down 88 percent from their 52-week high set last Feb 1. The bank announced the board changes after U.S. markets closed.
(Reporting by Christopher Kaufman; Editing by Gary Hill)