| BOSTON, MA - September 30 - As John Reed takes over as interim chair of the New York Stock Exchange, corporate accountability activists are voicing skepticism about the appointment. Reed’s predecessor, Richard Grasso, resigned earlier this month amid outrage over his receipt of $139.5 million in retirement benefits and deferred compensation. The furor around Grasso is the latest in a series of corruption scandals that have rocked consumer and investor confidence in corporate America. According to the corporate accountability organization Infact, Reed’s ties with such abusive corporations as Citigroup and Philip Morris/Altria call into question the image of him that is being promoted.
“In its attempts to clean up its image after the Grasso scandal, it only makes sense that the New York Stock Exchange is trying to paint its interim chair as squeaky clean and not tied to any specific interest. However, Reed’s high-level ties with Philip Morris/Altria and Citigroup, two of the world’s most powerful and abusive corporations, raise serious questions about his appointment,” says Infact Executive Director Kathryn Mulvey.
Until last week Reed was lead director of Philip Morris/Altria, the world’s largest and most profitable tobacco corporation. Having sat on its board since 1975, Reed was one of the longest-serving board members in the tobacco giant’s history. As a $62 billion giant, Philip Morris/Altria profits more than any other corporation from an epidemic that claims nearly 5 million lives every year. Reed owns close to 60,000 shares of Philip Morris/Altria stock.
When Reed left his position as CEO of Citigroup, the largest private financial institution in North America, he cashed in nearly $3 hundred million worth of the corporation’s stock and held onto 4.1 million shares. Citigroup has been widely criticized for practices that threaten health, the environment and human rights in the US and around the world. Like Philip Morris/Altria, Citigroup is notorious for its enormous influence over public policy.
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