Former Bank of Hawaii CEO Michael O’Neill has been named chairman of Citigroup Inc. to replace University of Hawaii alumnus Richard Parsons, who is stepping down from that position after overseeing the company’s recovery from near collapse in 2008.
O’Neill, 65, will take over after the firm’s shareholder meeting in April, the New York-based bank said Friday in a statement. Parsons, 63, spent 16 years on the board, becoming chairman in 2009 after the bank’s $45 billion bailout by U.S. taxpayers.
Citigroup is the third-biggest U.S. lender by assets. Last September, O’Neill was named chairman of Citibank NA, the primary banking subsidiary of Citigroup. O’Neill joined the Citigroup board in 2009.
"Given the strong position that Citi is in today, I have concluded that the time has come for me to take my leave," Parsons said in the statement. "I have complete confidence in the management team, the actions they have taken to strengthen Citi, and the course they have charted for the future."
O’Neill, who was hired as chairman and CEO at Bank of Hawaii on Nov. 3, 2000, transformed the bank into a more efficient operation, increased earnings to record highs and saw the stock price rise nearly fourfold before stepping down at age 57 in August 2004 to spend more time with his two sons on the East Coast and to look after his mainland and real estate investments.
He also became somewhat of a local TV personality with the bank’s "Tell Mike" marketing campaign.
O’Neill inherits a board grappling with a slump in revenue, higher costs and new regulations as CEO Vikram Pandit pushes the firm into emerging markets. The bank has repaid the U.S. Treasury Department’s rescue, which generated a profit of about $12 billion for taxpayers. The firm posted total net income of $21.9 billion for 2010 and 2011, compared with $29.3 billion of losses for 2008 and 2009.
"In Mike O’Neill, the board will have the perfect leader to enable it to continue providing the oversight and guidance America’s global bank deserves," Parsons said.
Parsons earned no fees as the non-executive chairman but received $232,500 in stock awards in 2010, according to the latest Citigroup proxy, filed in March 2011 with the Securities and Exchange Commission. During that same period, O’Neill received $50,000 in fees and $267,500 in stock awards for total compensation of $317,500. Citigroup hasn’t filed its proxy yet for 2011.
Parsons attended UH from 1964 to 1968 and majored in history but did not graduate from the university. In 1997 he received the UH Distinguished Alumni Award and in 2003 received the UH Honorary Doctor of Humane Letters.
Citigroup’s stock slipped 3 cents to $34.10 Friday on the New York Stock Exchange. The announcement was made after the market closed.
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Bloomberg News contributed to this story.
