Citigroup Inc Chief Executive Vikram Pandit abruptly stepped down following a clash with the company's board over strategy and operating performance at businesses including its institutional clients group. [source WSJ)
John Havens, Citigroup's president and chief operating officer, is also resigned.
A statement from Citigroup Chairman Michael O'Neill said Michael Corbat, previously chief executive for Europe, Middle East and Africa, would succeed Pandit as CEO and as a board member.
"We respect Vikram's decision," Chairman Michael E. O'Neill said. "Since his appointment at the start of the financial crisis until the present time, Vikram has restructured and recapitalized the company, strengthened our global franchise and refocused the business."
It seems Shares of Citigroup is rising after the resignation of Vikram Pandit.
Citigroup is 3rd largest bank in U.S.
The board's relationship with Pandit was already under pressure after shareholders rejected the CEO's pay package in an advisory vote. He was awarded more than $15 million in 2011 compensation, but 55 percent of shareholders voted against it at an April meeting.
About Vikram Pandit
Born in Nagpur, India, the 55-year-old Pandit obtained two electrical engineering degrees and a doctorate in finance from Columbia University. He joined Citigroup in July 2007 when the bank acquired his hedge fund and private equity firm, Old Lane Partners LP, for $800 million. Citigroup had to shut down Old Lane the next summer, an early black mark for the executive.He joined Morgan Stanley in 1983 and ultimately rose to the post of President and Chief Operating Officer of the company's institutional securities and investment banking businesses.
Pandit left Morgan Stanley to become a founding member and chairman of the members committee of Old Lane, LP. When Old Lane was acquired by Citi in 2007, Pandit became Chairman and CEO of Citi Alternative Investments. He later led Citi's Institutional Clients Group, and on Dec. 11, 2007, was named Citi's CEO.
Upon his appointment, Pandit embarked on a plan to refocus, recapitalize and restructure Citi during the toughest economic climate since the Great Depression. With the goals of long-term profitability and fueling economic recovery and growth at its core, Pandit's strategy for building a new Citi is centered on the company's historic strengths and unique competitive advantages: its global franchise, unique emerging market footprint, innovative spirit and talented and diverse employee base.
At Citi, Pandit has made Responsible Finance a priority. Citi is committed to providing choice, control and transparency for clients, managing risk responsibly and contributing to economic growth. From innovative foreclosure prevention programs that have kept more than 1,000,000 Americans in their homes to a new, disciplined approach to risk management, Responsible Finance is being engrained throughout Citi's practices and culture.
Mr. Pandit serves on the boards of Columbia University, Columbia Business School and the Indian School of Business. A naturalized citizen, he lives in New York City with his wife and two children.
While CEO of Citigroup in 2007, Vikram S. Pandit earned an annualized compensation of $3,164,320. In 2008, he earned a total compensation of $38,237,437, which included a base salary of $958,333, stocks granted of $28,830,000, and options granted of $8,432,911.
In 2008, Vikram Pandit was awarded the Padma Bhushanby the Government of India.
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