Sorry Citi, but Dick Parsons has a private equity career to run
Filed under: Company News, People
Citigroup's Chairman Richard Parsons told the board that he will split his time between Citigroup (C) and Providence Equity Partners, a private equity firm. Is this the right time to be changing his focus just as Citi tries to climb out of its deep hole? Citi is not ready for prime time if it's still raising funds using the FDIC's bond guarantee facility. Why would Parsons shift his focus just when Citi is in negotiations with the government to start weaning itself from its help?
It seems that Parsons is more interested in satisfying his own need to be part of the media industry rather than the needs of Citigroup and its investors. Parsons was the former chief executive of Time Warner and is a close friend of Providence's founder Jonathan Nelson.
Providence owns media companies like Metro Goldwyn Meyer, Hulu and Univision. Its investment success has been mixed. It has money makers such as Hulu and the Education Management Corporation while its investment in MGM appears to be underwater. Some analysts have raised questions regarding whether Univision can be successfully turned around.
Citigroup has been a lender in previous Providence deals, so Parsons will have to recuse himself when Providence issues come to the board at Citigroup. Parsons currently had no role in making loans or renegotiating the terms of previous loans.
Parsons retired from Time Warner's board earlier this year and obviously wants back into the media deal making world. He is expected to serve as an adviser to Providence's management team on future deals, as well as managing portfolio companies. He is not expected to make deals himself, but will likely be called upon to help in negotiations.
Lita Epstein has written more than 25 books, including Trading for Dummies.
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Reader Comments (Page 1 of 2)
9-16-2009 @ 10:40AM
david said...
Just another very greedy person,trying to get all the dollar he can , woth out thought to the investors. Pure greed can best describe this very vain and conceited person.He must be removed from Cita at once.
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9-16-2009 @ 12:44PM
Rocky said...
He is greedy is all and as far as both of them and their investing the reason that MGM is lacking behind is simple, they never invest in new talent just the same old has beens and people are getting tired of them.
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9-16-2009 @ 1:28PM
JZ said...
Nice track record pal! First you *uck up AOL after the merger when the price went from $600 a share down to $17, and now some idiots have given you a bank to screw up! Any body ever hear of checking references????
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9-16-2009 @ 1:30PM
JZ said...
......yeah just like Congress....but we keep sending them back anyway!
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9-16-2009 @ 2:01PM
Lynn Cee said...
What a joke and an insult -- and that is precisely what Parsons was at AOL. He is a member of the 'serial destroyer' club. Just dump him ASAP -- he's asking for it.
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9-16-2009 @ 2:47PM
dave said...
Tripple dippin Dick. Time warner, Citi, Private Equity 3 pay checks for the price of one person who one day, one of his companies will get better. That is what he says.....
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9-16-2009 @ 2:52PM
phdpamela said...
Another crook.
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9-16-2009 @ 3:37PM
Dan b said...
Funny how all the same whores run all these companies into the ground and keep coming back. It is sand in the Vaseline for taxpayers, who pick up after their losings bets. I love how thy always say how well Golman Sachs is run, after they get $93 million from taxpayers through AIG bailout money. All you have to do is payoff Chris Dodd.
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9-16-2009 @ 4:43PM
noelmark said...
that's it I am selling my cit stock, This guy is a loser , I hope oboma will do what he said about stock holders haveing more to say in how a company is run, we have directors seting on 3 and 4 boards, why not a officer being in two companies, buy some puts and make money, he will get millions when he leves.
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9-16-2009 @ 5:56PM
bob said...
This SOB should loose his job at Citi. I believe we own this bank. If he has a contract that allows that the fool that wrote that contract should be fired also. Maybe that was our great Treasure Sec.
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9-16-2009 @ 6:06PM
peter said...
this fool could not manage time warner which still has a negative net worth, and he gets to run citigroup?
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9-17-2009 @ 4:37PM
sonnype said...
This is the same guy who could`nt turn Time Warner around.Seems to me corporate America recycles its loosers
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9-16-2009 @ 7:31PM
Bob said...
Carter will lable all of you as racists.
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9-16-2009 @ 7:36PM
May said...
greedy turds make up our business leadership. And regardless of public outrage, the greed doesn't slow down one single bit
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9-16-2009 @ 8:02PM
mesamark said...
maybe he wants to get out before the public screams for his head
Citi bumps credit card interest rates to 29.99% as of October 1st.
Might be wise for him to skip town before then
Congress needs to stop screwing around with healthcare and look into what Citi is doing to it's captive customers
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9-16-2009 @ 9:19PM
CAROLYN said...
AMERICA I JUST LOVE THIS COUNTRY
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9-17-2009 @ 6:17PM
Theo said...
When he is either fired or resigns from citi, he will undoubtly be offered and collect a severance package of untold millions of dollars. No one will say a thing other than he was worth it. Buy out his contract now rather than have him fulfill his contract. Mean while, the employees of citi take it up the wazoo, forced to produce more, no pay raises for over a year, forced to collect more overdue credit card debt from people who are shafted with high interest rates, high payments and lack of assistance by citi other than we want our money. Have you ever tried to explain to a debt collector that you can't afford to make thes payments??? citi gots to pay this shister off before things get worse and he wants more!!! Get rid of the bum now!!!Don't give him or allow him a chance to get a golden parachute for quiting citi. The only one who will be affected will be the consumer. Higher Interest! Higher Payments! Continuing down the road to a Deeper than ever Recession. Forget the race card, this guy is a Bum! He should not be allowed to run a kool aid stand! Does anyone remember the name Chuck Prince??? He got a severance package of tens of millions of dollars for running citi into the ground in 2007-2008!!! At one time citi stock was worth approximately $57 per share. Earlier this year it went to 97 cents per share. Today it is less than $5 per share. What is wrong with this picture??? If citi keeps hiring Bums like him, they will become like the DoDo Bird-Extint!!!
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9-18-2009 @ 9:25AM
Theo said...
does anyone remember chuck princ???
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9-17-2009 @ 1:38AM
AnnieG said...
I am surprised he isn't a lobbyist.
Citi has received three cash infusions and are still terrible.
All of these CEO's sit on multiple boards. So what if you fire them..they have friends in high places and musical chairs continue.
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9-17-2009 @ 4:18AM
john said...
JUST HOW MUCH MONEY DOES ONE MAN NEED...GREEDY SONS OF BITCHES THAT'S WHAT HE AND ALL HIS CO-HORTS ARE!
BUT THE THING IN LIFE IS WHEN YOU LIE AND CHEAT HONEST PEOPLE YOU GET WHAT YOU DESERVE SO MAYBE THE NEXT TIME THIS GUY TAKES A CRAP HIS GUTS WILL ALL COME OUT AND THEN ALL HIS MONEY WON'T BE WORTH CRAP! THIS IS CRUEL BUT SO ARE THE THINGS THESE BASTARDS DO TO THE HARD WORKING MIDDLE CLASS...SO THEY DESERVE WHATEVER HARDSHIP COMES THEIR WAY...GREEDY BASTARDS!
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