This morning's New York Times reports that Citigroup Inc.'s (NYSE: C) Todd Thomson was ousted from his role as head of global wealth management yesterday.
Thomson, a former Bain consultant and Citigroup CFO who in 2005 touted that role as "the conscience of a company", was hired from General Electric Company (NYSE: GE) by former CEO Sanford Weill. According to the New York Times, Thomson had disagreements with Citigroup CEO, Chuck Prince, over acquisitions and business strategy.
But the kicker was that Thomson arranged to make Citigroup's corporate jet available to GE's NBC Universal's CNBC reporter, Maria Bartiromo, so she could fly to Asia. Beyond a DealBreaker Blind Item suggesting that Bartiromo may have played a part in Thomson's leaving his wife and family, this event raises troubling governance questions:
- What did Prince know about this and when did he know it?
- Are there other governance issues at Citigroup that Prince has yet to clean up?
- Why can't CNBC arrange transportation for its employees on its own?
- Doesn't this cozy relationship with Citigroup compromise the objectivity of Bartiromo's reporting on Citigroup?
- Have other companies arranged such travel for Bartiromo or other CNBC reporters?
While CNBC noted that it paid for the plane trip, it looks like CNBC and Citigroup have some more explaining to do.
Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm, a Professor of Management at Babson College, and editor of The Cohan Letter. He has appeared as a guest on CNBC and owns Citigroup and GE stock.
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Reader Comments (Page 2 of 2)
1-23-2007 @ 5:35PM
billy said...
I don't have a plane, but I'll drive Maria anywhere she wants. Matter of fact I would like to pay for her ticket. Lucky Billy.
1-23-2007 @ 5:53PM
James said...
That's the American Way......... Always an angle
1-23-2007 @ 5:54PM
NB said...
Disturbing to say the least! A deal-breaking decision that should cost both of their jobs. It is the stock holders that ultimately pay the tab for these frivoloties.
1-23-2007 @ 5:56PM
Ray said...
I take CNBC's financial advisors, analysts and reporters, like Maria, as seriously as Simon and Paula on American idol. Unfortunately CNBC has become an entertainment chanel rather than a serious and informative source of knowledge for serious investors.
1-23-2007 @ 6:01PM
Thomas Fess said...
Human-Nights:
Now, Now, we all can see Marie is a sex pot and that will take her through life.. Too many stupid men in high places with MONEY. There will always be a man looking to kiss her butt and make her a trophy wife..
Poooor Tom
1-25-2007 @ 7:58AM
billytickets said...
She used to be hot, Im not sure i would want to see her now in HDTV
1-23-2007 @ 6:19PM
John said...
Don't any of you recognize compromised objectivity when you see it? Some of you would rather attack the messenger here than Bartiromo. Flying on a Citicorp corporate jet automatically makes any reporting she does on them suspect!
1-23-2007 @ 8:17PM
Curious said...
As I understand it Thomson is (was now) married. Raises many questions I think. I'd like to know atr what rate CNBC re-imbursed Citi for this flight. I'll betcha it wasnt a 1/3 of the cost..not even close
1-23-2007 @ 6:34PM
JOHN said...
REGARDLESS MARIA IS MUCH MORE INTERESTING THAN ROSIE ITS REALLY THE DIFFERENCE BETWEEN BEING A REPUBLICAN OR A DEMOCRAT
1-24-2007 @ 8:37AM
FScott said...
As an ambitious, attractive woman in the financial sector, I have been the subject of rumors of affairs I had with colleagues. I had none of them. Neither did I have one with Kevin Costner when he decided to leave his wife and family while on his vacation (and mine) on the Big Island of Hawaii in September, 1994.
1-23-2007 @ 6:51PM
Jose said...
Maria?
What does beautiful have to do with honest reporting?
She is just a part of the whole rotten wall street bunch. I remember year 2000, got wiped out, whole life savings, and Ms. Maria the beautiful kept blowing into the tech bubble. GIVE ME A FREAKING BREAK. How could she be unbiased with Citigroup when she is using its jet?
1-23-2007 @ 10:44PM
STONEY XL said...
Are you kidding me old guy? She's SMOKIN and I've been around the world like Bond buddy.
1-24-2007 @ 6:49PM
JRG said...
DEAR MR. CURIOUS BEING A PILOT I CAN TELL YOU ONE MORE PERSON IN THE PLANE DOESN'T COST A CENT MORE.
BUT I WOULD RATHER FLY MARIA THAN HILERY.DONT FORGET HILERY BRINGS A LOT MORE BAGGAGE INCLUDING HER SECRET SERVICE FOLKS THAT YOU PAY FOR 24/7
1-23-2007 @ 8:34PM
JRG said...
DEAR MR. CURIOUS BEING A PILOT I CAN TELL YOU ONE MORE PERSON IN THE PLANE DOESN'T COST A CENT MORE.
BUT I WOULD RATHER FLY MARIA THAN HILERY.DONT FORGET HILERY BRINGS A LOT MORE BAGGAGE INCLUDING HER SECRET SERVICE FOLKS THAT YOU PAY FOR 24/7
1-24-2007 @ 7:59AM
John said...
It's about time the entire CNBC crew were investigated, especially Cramer with his ranting "expert" advice. No one in the market can claim to know it all everytime, a theme he yells out all the time. The show itself does nothing but add confusion to every new item or event with their doubting of the just released news. Accordingly, what appears to be good or bad news is always turned around to indicate the other truth may the real fact. The show is just so overdone and their chief economic guru is nothing but a former business writer for the St. Pete Times in Florida, the States worst business publication of all times.
1-24-2007 @ 8:52AM
LES said...
....YOU PEOPLE NEED TO WATCH MORE NFL GAMES. SPEND SOME TIME WITH YOUR FAMILY. SEND A CARD TO A SICK FRIEND. THINK HAPPY THOUGHTS.
1-25-2007 @ 12:46PM
MarkHainesIsHotter said...
So, is Maria still married? I remember seeing her hubby paraded out at NYSE on Maria's "last day" as a morning anchor/contributor/whatever, which CNBC made into "event TV". He looked like a good chap but probably not the "girl's dream" of a trophy husband. Poor guy.
OK, What is she doing flying home solo with this grandstanding playboy? She's a reporter and she's supposedly married. 16+ hours on a plane, with no stops? On so many levels, how do you put yourself in such a compromising position?
She writes for BusinessWeek, and hosts "The Wall Street Journal Report". Her integrity is completely compromised. How was this trip "arranged and approved in advance"? Was she on the phone with "corporate" back in NYC as the plane was on the runway, or was this a hastily arranged "approval post-trip".
Really, what other trips or honoraria has she been accepting? What about other "reporters" -- Has David Faber traveled on the Wal-Mart corp plane while reporting on his ("highly original") Peabody-Award Winning "Wal-Mart blah-blah" story? What about it??
Kudos to John for breaking that the economics "guru" used to be a writer for St. Pete Times -- didn't know that here. Reveals that "beauty" at these networks (perhaps qualifications, too) is truly "skin deep".
Forget pizza ... let's have some good ole zitti.
1-27-2007 @ 4:08PM
JH said...
PIC shown...: why is a Financial News reporter on a Cable News station that draws a couple hundred thousand viewers on some kind of Red Carpet at a Gala? "The Diva" is known for her Style not DEEP Substance. CNBC has a monopoly on Indie Investors TV watching of Biz News. Wait for Fox. Journalists don't wear Prada shoes and Gucci suits - Devils do.
Q1: Prince made room for Krawcheck to go back to SB Private Wealth, not happy as CFO making $15Million, and now set up as Prince's fall-gal, a Workaholic.
Q2: CNBC appeases "Maria" on lots of fronts, worried she may jump ship to Fox...Right. She is over the Hill for a Fox Girl Talking Head, and should have been censured - by ALL in Media - when she took off-the-cuff remarks by FedChair at black tie event, as permission to run with it. Bartfink leaking rates? If he were to, it would have been to Bloomberg people, not CNBC - traders don't watch MAria.
Q3: Why doesn't someone look at the parallels with "Maria" and her husband - a guy running a tiny Hedge Fund with its own questionable ethics?
Q4: Corporate Governance issues? Come-on, Thomson was not fired for this - see above. Sallie is Sandy's girl. Another Exec. way over her head.
1-27-2007 @ 4:19PM
JH said...
Huffington Post reported Friday - no sign of major corporate media outlets coverage - that "Maria"'s
lawyer registered on 1/16/07 - interesting timing, as maybe (?) her "colleagues" at The Journal tipped her off of the pending news story (?) - for several trademarks on "Money Honey", covering all sorts of things: tapes, coloring books, and...dolls. Prada and Gucci maybe next to ask her to promote therie clothes, on and off "Red Carpets" (your photo).
2-02-2007 @ 11:17PM
Mattykid said...
All new meaning to the "mile high club" Thank goodness Mr. Thomson can bail out in that golden parachute that us Citigroup shareholders have given him (eh, not us, the board of directors). Sandy would be rolling over in his grave if he was dead yet.