CORBAT TO REPLACE KRAWCHECK BY YEAR-END (Sept. 23, 2008)

“Mike is among Citi’s strongest senior managers, leading the firm’s efforts to provide best-in-class financial services to top-tier multi-national corporations and financial institutions,” says Pandit. “I am confident that we will enhance Citi’s already industry-leading position in this very attractive business.”

He adds, “Sallie Krawcheck has been an invaluable asset to the firm and a true thought leader within the industry. She has an impeccable reputation and has represented Citi well with our top clients and key constituencies around the world. We thank Sallie for her years of dedication and contribution and are pleased that she will help ensure a smooth transition over the next three months.”

In the second quarter of 2008, global wealth management increased sales by 4 percent, but the number of its advisors/bankers fell 4 percent to 14,983 from a year earlier. The unit has 674 offices and $1.7 trillion in assets under management; total AUM dropped 7 percent year over year.

Various press reports have explained that Krawcheck’s planned departure is a direct result of Pandit’s move to ask Krawcheck to take on a lesser role within global-wealth management. Krawcheck also had reportedly argued that clients should be compensated for losses tied to auction-rate securities and that Citi’s hedge funds had hurt relations with clients. The two also may have sparred over whether or not advisors should be more focused on selling Citi products vs. a broader array of financial products and services.