Bloomberg reports that episodes that led the board to replace Pandit with Michael Corbat included the rejection by regulators in March of a plan to boost shareholder payouts, said the person, who requested anonymity because board deliberations are private. Citigroup’s $2.9bn writedown on the Smith Barney brokerage unit and a two-level cut of its credit rating by Moody’s Investors Service also contributed, the person said.
Directors had discussed whether to replace Pandit for months, even before the appointment of Michael E. O’Neill as the new chairman in April, the person said. O’Neill, a board member since 2009, and other directors became increasingly frustrated with Pandit’s performance, and Corbat told the staff Tuesday that a shakeup may follow.
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