Deals & People April 4, 2008

State Street Names New SSgA Leader

State Street Corporation has named Scott Powers president and chief executive officer of State Street Global Advisors (SSgA), the company’s investment management arm.
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Powers will report to Ronald E. Logue, chairman and chief executive officer of State Street, and will join the company’s Operating Group, State Street’s senior-most strategy and policy-making team, the announcement said. He succeeds James S. Phalen, who has served as interim president and CEO of SSgA since January.

Phalen will return to his position as head of international operations for State Street’s investment servicing and investment research and trading businesses.

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Powers will join SSgA from Old Mutual US where he has served as chief executive officer of Old Mutual plc’s US operations. Prior to joining Old Mutual, he held senior management positions at Mellon Institutional Asset Management and The Boston Company Asset Management. Powers began his career as a financial services adviser with Dean Witter Reynolds.

Compliance April 4, 2008

Citigroup Settles Gender Discrimination for $33M

Citigroup Inc. has agreed to pay $33 million to about 2,500 current and former female brokers for its Smith Barney unit to settle a gender discrimination lawsuit.
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Reuters reports that Citigroup also agreed to change how it awards bonuses and assigns accounts and to adopt measures to help retain and promote women, according to court papers.

The settlement “will include the input of outside experts who will not only help Citigroup better train, develop and retain women, but also make the company itself more successful,” Kelly Dermody, a partner at Lieff, Cabraser, Heimann & Bernstein L.L.P., which represented the brokers, told Reuters.

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In the March 2005 complaint, the plaintiffs accused Smith Barney of preventing female brokers from competing fairly with men for new accounts, promotions, and pay, and of depriving women equal training and sales support.

The complaint also alleged Smith Barney used past performance, which plaintiffs called “the results of historical discrimination,” as a means to award business and pay.

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