More on Rubin
In the Wall Street Journal, Bob Rubin continues to strike the "oh, all right, if you insist" theme.
Mr. Rubin said he was reluctant to take the chairman's post but ultimately agreed to out of "concern for the company and concern for the people of the company and the importance of the company in the global economy." He added that it wasn't the way either he or Sir Win Bischoff, who was named interim CEO, "would have chosen to spend our lives at this point."
This seems rather uncharitable, given that Citigroup has been paying Rubin approximately $20 million a year for the past eight years for the odious burden of taking the occasional meeting...
Until now, Mr. Rubin's job at Citigroup largely entailed attending -- and offering advice at -- weekly meetings of business heads, helping to orchestrate acquisitions and tapping his contacts to win business for the New York bank. "If you need somebody to call somebody and get the phone answered, Bob can do it," says a senior Citigroup executive, noting that Mr. Rubin enjoys "unencumbered access" to leaders and executives around the world.
Harvard-watchers might also wonder if criticisms about the Citigroup corporate board might also apply in some cases to the Harvard Corporation.
To critics, the composition of the 14-person board is part of the problem. Corporate-governance experts frown upon boards stocked with CEOs, arguing that such executives tend to defer to their fellow CEO's judgment and are less likely to exercise aggressive oversight. Citi's board is stacked with current and former chiefs, from Time Warner Inc. CEO Richard Parsons to Alcoa Inc.'s Alain Belda. Only Mr. Parsons, who ran a small New York bank until 1995, has a background in the financial-services industry.
And finally, it is interesting to see Rubin, who meticulously cultivates his reputation, taking a few hits.
It is Mr. Rubin, the highest profile member of the star-studded board, who has been a particular lightning rod for criticism. His murky responsibilities and lucrative pay package have fostered resentment. Last year, he collected a total of about $17.3 million in salary, bonus and stock awards, making him Citigroup's second-highest paid executive after Mr. Prince, according to the company's proxy statement. To some past and current Citigroup executives, and to investors, the pay seems excessive.
"I and others should hold Rubin partially responsible" for Citigroup's struggles, says Douglas Kass, who runs Seabreeze Partners Management Inc., a hedge fund that doesn't have a position in Citigroup stock.
There was a time when journalists would have been terrified to use words like "murky responsibilities" when discussing Rubin, lest the find their access quickly cut off....
