Sovereign Bancorp 'may fire CEO'

6 October 2006

Sovereign Bank might axe their chairman and chief executive Jay Sidhu on Tuesday, the Wall Street Journal has reported.

The newspaper claims seven of the 12 board of directors for Sovereign have a meeting planned for Tuesday with a conspicuous agenda item is to discuss whether to terminate Mr Sidhu.

The directors who are pushing for Mr Sidhu's removal cite the "deteriorating operating position" of the savings and loan business and an abysmal share price as grounds.

The board allegedly will favor appointing an interim CEO and "name an independent member as outside chairman of Sovereign."

Mr Sidhu was appointed to chairman in 2002 and since appointment, 20 per cent of the company has been sold to Santander Bank and the market share has decreased significantly.

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