Ford Director Quits to Allay Conflict of Interest Concerns

29 August 2006

DEARBOURN, Michigan: Former US Treasury secretary Robert E Rubin has resigned from the board of Ford Motor Company amid concerns that his position on the board of investment bank Citigroup could clash with his Ford responsibilities.

His exit follows a Ford board meeting in July which coincided with the hiring of Citigroup, along with Goldman Sachs, to advise Ford on strategic options for escaping its current crisis.

In a letter to chairman/ceo Bill Ford Jnr, Rubin cites Citigroup's "multi-faceted relationship with Ford [which] could raise a question whether my relationship with Ford and Citigroup creates an appearance of conflict."

Quite the reverse, believe some observers, who see the 'appearance' as one of confluence rather than conflict.

Data sourced from Wall Street Journal Online; additional content by WARC staff