Citigroup CEO Pandit Steps Down

COO also resigns; both effective immediately

"Now is the right time for someone else to take the helm at Citigroup," Vikram Pandit said. (Photo: AP) "Now is the right time for someone else to take the helm at Citigroup," Vikram Pandit said. (Photo: AP)

Vikram Pandit has resigned as CEO of Citigroup, effective immediately, and is also giving up his place on the company’s board. President and Chief Operating Officer John P. Havens has also stepped down.

Bloomberg reported Tuesday morning that Pandit will be replaced by Michael Corbat, who led Citigroup in Europe, the Middle East and Africa. Corbat’s accession to the leadership position is already effective. In what has been a tough year so far, Pandit has seen his compensation challenged by shareholders and regulators reject Citigroup’s plan to boost payouts to investors.

“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 a statement issued by the bank on Tuesday morning. “Mike is the right person to tackle the difficult challenges ahead.”

Corbat said in the statement, “With unprecedented economic, regulatory and political change, my top priority is to keep us focused on what our clients need. The fundamentals we have in place today are solid, and we are on the right path.”

Shares of Citigroup fell in early trading.

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