In a surprise move, Citigroup's Indian-American chief executive Vikram
Pandit has stepped down ending his tumultuous five-year reign atop the
banking giant that he had nursed to recovery through the financial
crisis.
The move that sent shock waves through the financial
world came just one day after Citigroup wowed Wall Street with solid
third-quarter earnings. Citigroup's President and COO John Havens also
resigned.
Citigroup's board of directors appointed Michael
Corbat, who headed the bank's operations in Europe, the Middle East, and
Africa, as the bank's new CEO.
The India's Nagpur-city-born
Pandit, who was named the new CEO of Citigroup Dec 11, 2007, replacing
interim-CEO Sir Winfried Bischoff worked for two years for a salary of
$1 a year as he nursed the ailing bank to recovery.
In January
2011, Pandit's annual base was raised to $1.75 million for the progress
Citi made under his leadership. After posting five consecutive quarterly
profits, Citigroup in May 2011 announced $23.2 million retention award
to Pandit making him one of the highest paid CEOs. However, in April
2012, shareholders voted against increasing his pay to $15 million.
"Thanks
to the dedication and sacrifice of people across Citigroup, we have
emerged from the financial crisis as a strong institution," said Pandit
in a company statement.
"Citigroup is well-positioned for continued profitability and growth, having refocused the franchise on the basics of banking."
"Given
the progress we have made in the last few years, I have concluded that
now is the right time for someone else to take the helm at Citigroup,"
he said
"Mike is the right person to tackle the difficult
challenges ahead, with a 29-year record of achievement and leadership at
this Company," he said. I will truly miss the wonderful people
throughout this organisation. But I know that together with Mike they
will continue to build on the progress we have made."
"We respect Vikram's decision," said Michael E. O'Neill, chairman of the Citigroup Board of Directors in a company statement.
"Since
his appointment at the start of the financial crisis until the present
time, Vikram has restructured and recapitalised the Company,
strengthened our global franchise and re-focused the business."
"The
Board and I are grateful to Vikram for his leadership, integrity and
resilience in guiding Citi through the crisis and positioning it well
for the future. We wish him all the best with the next stage in his
career.
Vikram Pandit quits as Citigroup chief
