Vikram Pandit will step down as CEO of Citigroup (C) immediately, as will COO John Havens, the company announced this morning. Shares were down 2.4% in pre-market trading after the surprise announcement.
“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 in the statement.
The decision comes one day after the bank posted better than expected core earnings, sending shares higher.
In a memo to the staff obtained by the Wall Street Journal, Pandit pointed to the earnings release as evidence of the bank’s success under his leadership: “There is nothing better than our third quarter earnings announcement to demonstrate definitively that we have turned this company around. Yesterday�s results show this clearly.”
Taking over will be Michael Corbat, Citigroup�s CEO of Europe, Middle East and Africa.
“In his latest role as Citi�s CEO of Europe, Middle East and Africa since the start of the year, he oversaw all of Citi�s business operations in the region, including consumer banking, corporate and investment banking, securities and trading and private banking services,” the company said.
We will update as we learn more.
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