With the conversion of Citigroup Inc’s stock on Thursday, which makes the US government the largest shareholder in the New York-based bank – with a 34 percent equity stake – three new outside directors have been appointed to the company’s board.

The bank’s management revamp, which continued after effecting the $12.5 billion convertible stock transaction, entailed the appointment of the new directors, namely, - Diana Taylor, 54, the New York State Banking Department’s former superintendent of banks; Timothy Collins, 52, the Ripplewood Holding’ CEO; and Robert Joss, 68, the Dean of Stanford University's graduate school of business.

The move to overhaul the management came after the regulators pressed the Citigroup CEO Vikram Pandit and Chairman Richard Parsons to undertake measures for improving the bank’s performance after the federal bailouts, resulting largely from billions of dollars of credit losses and writedowns.

In order to establish more risk-oversight measures, especially after the billion of dollars poured into the careworn bank, the government and banking regulators have been reiterating that they would like experienced commercial bankers to hold key positions in the bank.

Along with the appointment of the three new outside directors, which has raised the number of board members to 17, Citigroup has also named board member Jerry Grundhofer as the new, non-executive chairman for Citibank NA. In addition, a new oversight committee has also been set up for Citi Holdings.