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Time for the board of Citigroup to step up

The next meeting of Citigroup’s board of directors will no doubt be an awkward affair. After taking $24bn of writedowns and wiping more than $150bn of the value of the company, the 15 directors of what used to be the biggest bank in the world have plenty to think about. However, the item at the top of the agenda should be how many of the directors should seek re-election at next shareholder meeting in April and stay on to help restore the group’s battered reputation.

Citigroup shareholders and staff are angry with their board. The group has slipped behind Bank of America and JP Morgan Chase in terms of market capitalisation, as its share price has collapsed more than 56% in the past year. Most options granted to staff are deeply underwater - costing them a theoretical $2.9bn - and the value of employees' restricted stock has fallen by $3.9bn. Charles Prince, the chairman and chief executive who was ejected in November, has carried the can.

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