The Wall Street Journal is reporting that Citi CEO Vikram Pandit abruptly stepped down following a clash with the New York company's board over strategy and operating performance at businesses including its institutional clients group, according to people with knowledge of the bank.
The New York Times reports that Pandit's resignation comes after long-simmering tensions with the bank’s board. In particular, the board’s chairman, Michael E. O’Neill, had been increasingly critical of Pandit’s management of the sprawling global bank, according to several people close to the bank.
Pandit was seen by some board members as not being able to quickly and effectively execute strategy, lurching from crisis to crisis, these people said. There were concerns that the executive lacked the breadth of vision needed to turn the bank around. 'He was considered more technically skilled', one Citi executive said.
The news came as a shock to staff, some of whom are said have heard of Pandit's departure from the media before they were emailed the offical announcement.
In the meantime, Michael Corbat, who was named today to become Pandit's successor as CEO, said he’ll spend the next several weeks scrutinizing the bank’s management structure and businesses before making changes.