SEC Throwing Wrench In Citi's Plan To Name The Fonz A Director


This-- the Securities and Exchange Commission's plan to show us it means business by robbing our nation's banks of the right to appoint actors and sports stars to their boards--is a bunch of bull shit. And I'll have you know The Juice has more business acumen in his pinkie than every Bank of America director combined. Also, do not discount the value of having some with the sort of initiative, drive and loose interpretation of the law that'll allow him to say "I'm gonna break in there and get my shit," which you don't often find in the boardroom.

U.S. companies' celebrity directors include Armstrong, 37, who quit last year after being paid $71,644 by Morgans; National Football League running back O.J. Simpson, 61, a member of four boards and the audit committee at Infinity Broadcasting Corp. before prosecutors charged him in the 1994 murders of ex-wife Nicole Brown Simpson and her friend; and National Basketball Association hall-of-fame guard Oscar Robertson, 70, a Countrywide director for eight years until the lender, at risk of collapse, was bought by Bank of America in 2008.
"What the SEC wants to do is prompt companies to make sure they're appointing directors who can do the job and not just look pretty on a roster," said Stephen Davis, a senior fellow at the Millstein Center for Corporate Governance and Performance at the Yale School of Management.

The rules to be discussed by the SEC tomorrow would require companies to disclose information about directors' skills and experience on issues from executive pay to accounting rules. The agency is acting after boards at Bank of America, the biggest U.S. bank by assets, and Countrywide Financial Corp. failed to rein in lending that contributed to the financial crisis.