Why did Xerox add Chuck Prince to its board of directors?

Posted Jul 11th 2008 4:47PM by Zac Bissonnette
Filed under: Management, Citigroup Inc. (C)

Xerox Corporation (NYSE: XRX) announced yesterday that it had elected Chuck Prince to its board of directors.

Yes, that Chuck Prince: the one who presided over a rapid decline in Citigroup Inc (NYSE: C)'s financial position and was forced to step down in November -- with $94 million in stock, a $1.74 million pension, and other assorted goodies. Then he was hauled before Congress to explain himself.

Why exactly would you want this guy on your board of directors? If you're a shareholder, I can't even imagine. But if you're the CEO, he'd be a great "watchdog." And the company's CEO, Anne Mulcahy, is also the chairman of the board. In the press release announcing his appointment, she said that "Chuck is a visionary leader whose unique talent and exceptional business experience will be a tremendous asset to our board."

Visionary? I'm actually inclined to agree. To lead the destruction of value at America's largest financial institution and then leave with 9-figures requires tremendous vision. If I were a Xerox shareholder, I'd be insulted.

Tags: C, Chuck Prince, ChuckPrince, Citigroup, Xerox

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7-11-2008 @ 6:10PM

Chuck said...

I'd keep an eye on Anne Mulcahey because she may be walking away in a while with a "parachute" like Prince. The guy should be drawn and quartered for his actions(or lack thereof) during his period as CEO of Citigroup. I have no doubt that he will get his just rewards someday when he least expects it.