Citigroup CEO Vikram Pandit steps down

New York, NY, United States (4E) – Citigroup chief executive officer Vikram Pandit announced that he is resigning his position effective immediately, and will be replaced by Michael Corbat. Pandit is also giving up his post as a board member in the company.

John P. Havens, Citi’s president and chief operating officer, has also stepped down.

The announcement comes mostly as a shock to even many Citi employees.

In a statement, Pandit said that it was the right time for another person to assume the job after the progress that have been made in the last few years.

Before being named as the new CEO, Corbat has spent nearly three decades with the company as chief executive in the Middle East, Africa and Europe. He is a Harvard graduate and also spent time at Salomon Brothers.

Citi chairman Michael E. O’Neill said that the company respects Pandit’s decision and acknowledged his contributions in restructuring the company, refocusing its business and strengthening its global presence since his hiring at the beginning of the financial crisis.

Back in August, the Wall Street Journal reported that Corbat is being considered a likely candidate for a top position in the succession plans within company.

Citigroup announced on Monday that third-quarter earnings declined by 88 per cent to $468mn because of charges from its debt and a sale of its stake in a brokerage joint venture, but profits from its core businesses show signs of further improvement.

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