Citigroup's intention to add directors with finance expertise raises the question: How many is too many?
Citigroup's announcement on Monday that it plans to stress finance and investing know-how in filling upcoming openings on its board of directors could be the tip of an iceberg.
More financial-services companies whose earnings were hijacked by their investments in subprime mortgage-backed securities and other kinds of companies simply struggling with the current economic downturn are likely to adopt the same strategy, according to some who are familiar with the workings of corporate boards. But that doesn't necessarily mean the strategy is a sound one.
Citigroup giant stated on its website that it is "actively seeking new directors" and is placing a "particular emphasis on expertise in finance and investments." As to its reasons, the notice said only that the move is "in response to shareholder inquiries related to the scheduled retirement of certain directors." A company spokesman declined further comment.
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