Financial services giant Citigroup, Inc. (C: Quote) announced Tuesday the surprising resignation of Chief Executive Officer Vikram Pandit, effective immediately, a day after the company reported strong third-quarter results.
The company has elected Michael Corbat to replace Pandit, who also resigned as a member of the board.
"We respect Vikram's decision. 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 re-focused the business," Chairman Michael O'Neill said in a statement.
Chief Operating Officer John Havens is also leaving the company.
"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," Pandit said.
Pandit took over as chief executive officer of Citigroup in December 2007 and successfully guided the company through the financial crisis in 2008. However, the company's stock is down more than 90 percent in the five-year period with Pandit at the helm.
After Pandit took over as CEO of the company, Citigroup abandoned its acquisition-fueled growth strategy that built the company from a small consumer-finance business into one of the world's largest financial institutions. The company shrunk itself by divesting non-core businesses and trimmed costs. Citi also took $45 billion in bailout funds to stay afloat.
Corbat has most recently served as Citigroup's CEO of Europe, Middle East and Africa. He has served at Citi and its predecessor companies since his graduation in 1983.
He grew through the ranks and held several executive positions with a 29-year record of achievement and leadership, including being CEO of Citi Holdings and also the CEO of Citi's Global Wealth Management unit.
"Mike Corbat has demonstrated outstanding leadership qualities and the ability to sharpen our focus on achieving strong, sustained operating performance. From his nearly three decades at the Company he brings deep and varied operating experience across a broad spectrum of the financial services industry," O'Neill added.
In Tuesday's regular trading session, C is currently trading at $36.64, down $0.02 or 0.05% on a volume of 28.93 million shares. In the past 52-week period, the stock has been trading in a range of $23.30 to $38.40.
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by RTT Staff Writer
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