Michael Corbat, Citi’s CEO of Europe, Middle East and Africa, will take the top spot. He has been with the company for close to three decades.
So, why did Pandit make his move? The reason he gave was that it’s the “right time.”
But of course, Wall Street is full of speculation. Was Pandit disappointed with shareholders’ veto of his compensation package? Does he want to start a new hedge fund? Or is he just fed up with dealing with regulators?
Despite all the drama and unanswered questions, there’s little impact on Citigroup’s stock price so far in today’s early trading. After a premarket drop of around 3%, the stock is now up about 1% in the first hour.
Pandit became CEO in late 2007 and led Citigroup through the wrenching financial crisis, by aggressively cutting back on costs and raising capital by unloading assets. By 2010, Pandit brought the giant bank back to profitability and was able to pay off the federal government’s bailout loan of $45 billion.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.