Shock exit: Vikram Pandit suddenly quits Citigroup

By SCOTT REID
Published on 17/10/2012 00:00

Citigroup chief executive Vikram Pandit resigned yesterday in a shock change at the top of the US financial giant just a day after a resilient quarterly earnings report.

He is being replaced by Michael Corbat, who was previously the bank’s chief executive for Africa, Europe and the Middle East.

Analysts and investors quickly raised red flags about the timing of Pandit’s departure, saying it did not appear to be a natural transition. Within minutes of the announcement, his name was gone from Citigroup’s website.

The board’s relationship with the chief executive was already under pressure after shareholders rejected his pay package in an advisory vote.

Citigroup’s chief operating officer, John Havens, a long-time associate of Pandit, also resigned.

Meanwhile, Wall Street investment bank Goldman Sachs said its third-quarter profits rose sharply, hitting a better-than-expected $1.5 billion (£931 million).