NEW YORK (news agencies) — Richard Parsons, one of corporate America’s most prominent Black executives who held top posts at Time Warner and Citigroup, died Thursday. He was 76.
Parsons, who died at his Manhattan home, was diagnosed with multiple myeloma in 2015 and cited “unanticipated complications” from the disease for cutting back on work a few years later.
The financial services company Lazard, where Parsons was a longtime board member, confirmed his death.
David Zaslav, the president and CEO of Time Warner successor Warner Bros. Discovery, remembered Parsons as a “great mentor and friend” and a “tough and brilliant negotiator, always looking to create something where both sides win.”
“All who got a chance to work with him and know him saw that unusual combination of great leadership with integrity and kindness,” Zaslav said, calling him “one of the great problem solvers this industry has ever seen.”
Parsons’ friend Ronald Lauder told The New York Times that the cause of death was cancer. Parsons stepped down Dec. 3 from the boards of Lazard and Lauder’s company, Estée Lauder, citing health reasons. He had been on Estée Lauder’s board for 25 years.
Parsons, a Brooklyn native who started college at 16, was named chairman of Citigroup in 2009, one month after leaving Time Warner Inc., where he helped restore the company’s stature following its much-maligned acquisition by internet provider America Online Inc.
He steered Citigroup back to profit after financial turmoil from the subprime mortgage crisis, which upended the economy in 2007 and 2008.
Parsons was named to the board of CBS in September 2018 but resigned a month later because of illness.
Parsons said in a statement at the time that he was already dealing with multiple myeloma when he joined the board, but “unanticipated complications have created additional new challenges.” He said his doctors advised him to cut back on his commitments to ensure recovery.
“Dick’s storied career embodied the finest traditions of American business leadership,” Lazard said in a statement. The company, where Parsons was a board member from 2012 until this month, praised his “unmistakable intelligence and his irresistible warmth.”
“Dick was more than an iconic leader in Lazard’s history — he was a testament to how wisdom, warmth, and unwavering judgment could shape not just companies, but people’s lives,” the company said. “His legacy lives on in the countless leaders he counseled, the institutions he renewed, and the doors he opened for others.”
Parsons was known as a skilled negotiator, a diplomat and a crisis manager.
Although he was with Time Warner through its difficulties with AOL, he earned respect for the company and rebuilt its relations with Wall Street. He streamlined Time Warner’s structure, pared debt and sold Warner Music Group and a book publishing division.
He also fended off a challenge from activist investor Carl Icahn in 2006 to break up the company and helped Time Warner reach settlements with investors and regulators over questionable accounting practices at AOL.
Parsons joined Time Warner as president in 1995 after serving as chairman and chief executive of Dime Bancorp Inc., one of the largest U.S. thrift institutions.
In 2001, after AOL used its fortunes as the leading provider of Internet access in the U.S. to buy Time Warner for $106 billion in stock, Parsons became co-chief operating officer with AOL executive Robert Pittman. In that role, he was in charge of the company’s content businesses, including movie studios and recorded music.
He became CEO in 2002 with the retirement of Gerald Levin, one of the key architects of that merger. Parsons was named Time Warner chairman the following year, replacing AOL founder Steve Case, who had also championed the combination.
The newly formed company’s Internet division quickly became a drag on Time Warner. The promised synergies between traditional and new media never materialized. AOL began seeing a reduction in subscribers in 2002 as Americans replaced dial-up connections with broadband from cable TV and phone companies.
Parsons stepped down as CEO in 2007 and as chairman in 2008. A year later AOL split from Time Warner and began trading as a separate company, following years of struggles to reinvent itself as a business focused on advertising and content. Time Warner is now owned by AT&T Inc.
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