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Last Update: 16-Oct-12 09:14 ET
Citigroup shares fall nearly 3% following news that Vikram Pandit has stepped down as CEO
Citigroup (C 36.04 -0.62) announced that Vikram Pandit has stepped down as the Company's Chief Executive Officer and as a member of the Board, effective immediately. The Board also announced it has unanimously elected Michael Corbat CEO and a director of the Board. Mr. Corbat previously served as Citigroup's CEO of Europe, Middle East and Africa. Mr. Pandit said: "Thanks to the dedication and sacrifice of people across Citigroup, we have emerged from the financial crisis as a strong institution. 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. I could not be leaving the Company in better hands. Mike is the right person to tackle the difficult challenges ahead, with a 29-year record of achievement and leadership at this Company. I will truly miss the wonderful people throughout this organization. But I know that together with Mike they will continue to build on the progress we have made."
Mr. Corbat said "The fundamentals we have in place today are solid, and we are on the right path. In this dynamic market environment, however, we must efficiently allocate our resources and offer the products with the highest potential in the most productive markets."
The Company further announced that President and Chief Operating Officer, John P. Havens, who also served as CEO of Citi's Institutional Clients Group, has resigned. Mr. Havens said that he had already been planning retirement from Citi at year-end but decided, in light of Mr. Pandit's resignation, to leave the Company at this time.
Mr. Corbat said "The fundamentals we have in place today are solid, and we are on the right path. In this dynamic market environment, however, we must efficiently allocate our resources and offer the products with the highest potential in the most productive markets."
The Company further announced that President and Chief Operating Officer, John P. Havens, who also served as CEO of Citi's Institutional Clients Group, has resigned. Mr. Havens said that he had already been planning retirement from Citi at year-end but decided, in light of Mr. Pandit's resignation, to leave the Company at this time.
