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Citi CEO: Jump, or Push?

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October 17, 2012 – Comments (2) | RELATED TICKERS: C

Board: Macro Economics

Author: WatchingTheHerd

The biggest headline today was the surprise announcement of the resignation of Citi's CEO, Vikram Pandit. I don't really know anything about what happened but what's probably worth a worry or two is that no one else seems to know either, including Citi's management. Pandit publicly stated he decided to leave but other buzz emerging from the board meeting held Monday night indicates he resigned only after having the Chairman pointedly tell him to get his head in the game and stop being so passive.

After Pandit resigned, the COO who is close to Pandit also resigned so the board had to replace TWO senior executives in one night with zero notice.

Some stories about the departure are leading with a theme that he won't be leaving with much of a golden parachute -- most of his long term options and deferred compensation units are either underwater or null and void if he ends employment prior to his contract term. However, Pandit won't be visiting any soup kitchens any time in the next 50 years. He apparently took home a $100 million payout in 2011 from the close-out of a hedge fund he operated earlier.

Citi remains one of the weakest, most poorly operated TBTF banks. A major shift in its power structure might be exactly what it needs to reach terra firma (and what we need to lessen its TBTF threat to the rest of the system) but this merits close attention over the next few months.


WTH

2 Comments – Post Your Own

#1) On October 17, 2012 at 12:21 PM, L0RDZ (84.32) wrote:

Victor  was  essentially  fired  over  disagreements between salary expectations and  performance evaluations.

As everyone knows not only  did he abruptly leave  like some angry child disatisfied with the other children (board) ignoring him, but he also left with his other close friend  whose insignificant  performance seems to elude me even knowing his name ?  but apparently  he  was like the chief operations officer ?

Victor's biggest failure maybe  was not acknowledging the influence of  big brother (government) actually  being the one in control of the fate of  Citi.

Personally I would like to see the tax payers money immediately returned in full with substantial interest and Citi broken down into more manage-able smaller self run banks (units).

Not continued as some TBTF gov run puppet entity.

 

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#2) On October 17, 2012 at 1:52 PM, awallejr (83.97) wrote:

I loved playing with Citibank's stock back in '09 and '10.  I played the common, the preferred and sold puts.  Made many suggestions here back then and made good money until I started seeing all the dilution that was going on.  Three times it hit $5 and on the third time I bailed out and warned people here that C will be forced to do a reverse stock split.

Right now the stock is still only trading for $3.80 pre split, basically worse now than years ago.  He deserved the boot.

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