Citigroup CEO Quits

Vikram Pandit, the chief executive of Citigroup Inc, has resigned from his post after months of conflict with the board. Pandit has been at odds with Chairman Michael O’Neill for months over different issues like the role and compensation of Citigroup chief operating officer John Havens.

According to Pandit, it was his personal decision to resign after weeks of contemplation. Havens also tendered his resignation.

With Pandit’s departure, O’Neill now has full control of the bank. Michael Corbat has been immediately named chief executive officer.

The departure of Pandit came both as a shock and welcome surprise, depending on where one is in the bank. Pandit was involved with several controversial issues like Citi selling its retail brokerage business stake to Morgan Stanley at a loss.

The bank’s shares increased by as much as two percent with many investors saying they do not regret losing Pandit. Citigroup’s shares closed at US$36.95.

For months, Pandit and the Citigroup board have been at odds with each other. Shareholders rejected Pandit’s pay package last April. Although he received about US$15 million as compensation for 2011, more than half of Citigroup’s shareholders voted against it.

Corbat’s assumption of the post, on the other ahnd, means he would be working again with O’Neill. The two first worked together at investment bank Salomon Brothers in the 1980s.

Corbat is a Harvard graduate with an economics degree.