Harvard Business School Dean May Join Citigroup Board

Harvard Business School Dean Jay O. Light may take a seat on the board of Citigroup, the venerable-but-troubled Wall Street bank that has taken over $40 billion in write-downs over the past year.

Light, who holds a doctorate in decision theory from Harvard and is an expert in risk management, is being recruited to join Citigroup's board as part of the bank's drive to add people with financial expertise.

News of the discussions between Light and Citigroup, which were confirmed by an official at the Business School, were first reported in The New York Times on Wednesday. Both parties have declined requests for comment, and because nothing has yet been finalized, officials who have spoken to the media have requested anonymity. 

Light, a highly-regarded scholar who has written extensively about structuring complex financial transaction, became acting dean of the Business School after his predecessor stepped down in August 2005. He was named full dean in 2006.

Light also serves on the board of the Harvard Management Company, which manages the University’s $34.9 billion endowment. In the late 1970s, Light also took a brief leave of absence from the Business School to serve as the Ford Foundation’s director of investments.

Harvard's top brass has at least one strong tie to Citigroup already: former Treasury Secretary Robert E. Rubin, a fellow on the Harvard Corporation, the University's seven-member governing body, is both a board member and high-ranking executive at the bank. Last November, Rubin made one of his infrequent public appearances at Harvard in a speech at the Business School.

Light joining Citigroup's board would be a victory for chief executive Vikram S. Pandit, who is trying to remake the board as he seeks to reverse the bank's fortunes. Citigroup's stock has lost two-thirds of its value in the past year.

The Times reported that Light's ascension could pave the way for other directors to leave the board to make way for more indviduals with backgrounds in finance. Currently, The Times reported, none of Citigroup’s 10 directors has extensive experience on Wall Street, and just one is a former finance chief.