Citigroup Replaces Pandit as New CEO Corbat Considers Shakeup

Pandit, who helped lead the bank back after 2008 crisis, is out.

Citigroup Inc. Chief Executive Officer Vikram Pandit, who led the bank through a U.S. bailout while reaping $261 million for himself, was replaced by Michael Corbat, who said he may make shake up the firm’s operations.

President and Chief Operating Officer John P. Havens, 56, also resigned, the New York-based bank said today in a statement. Corbat, who led Citigroup in Europe, the Middle East and Africa, takes the helm immediately as Pandit, 55, leaves both his executive role and his seat on the board.

Shares of New York-based Citigroup, the third-largest U.S. bank, rose 0.2 percent to $36.74 as of 10:45 a.m. in New York. While the stock had gained 39 percent this year through yesterday, it remains down about 90 percent since Pandit was publicly named as CEO in December 2007 when losses tied to the brewing financial crisis drove out his predecessor, Charles O. “Chuck” Prince.

Sudden Change

“The international business is where they live and die, so hopefully this fellow, because of his background, is going to be able to focus on that and retain that and then develop a model for the future,” said Chris Whalen, a senior managing director at Tangent Capital Partners LLC, on Bloomberg Television. The management change “is very disorderly and I think they need to explain to us why this timing made sense from the board’s perspective.”

Pandit’s Pay

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