David Enrich of the WSJ reported this morning that the chairman of Citigroup’s audit and risk committee, Michael Armstrong, is expected to step down “amid a push by the AFL-CIO and other institutional investors to oust him from Citigroup's board.”

“The mortgage rout has already cost several chief executives their jobs. Now some corporate directors serving on the audit committees of financial firms are in the crosshairs of investors,” Enrich writes.

Enrich noted that other financial service companies are feeling pressure from shareholders as well. “The campaign against Mr. Armstrong could energize similar efforts, while forcing directors and companies to reassess how effectively audit committees are doing their job,” Enrich writes.

Citing a board-restructuring plan rumored to be under consideration at Merrill Lynch, Enrich notes that some banks are already taking steps to “pacify investors.”

Posted by Anna Mumford on April 8, 2008 12:42 PM