Management Turnover as Change Agent

Wednesday, January 20, 2010

CEO Watch - Vikram Pandit, Citigroup Update #3

The ongoing saga at Citigroup continues. Vikram Pandit, who took over as Citigroup’s CEO two years ago, is approaching an imaginary make or break deadline. While Pandit is not responsible for the difficulties Citigroup got itself Vikram Panditinto, his management style and circumstances have not brightened his star as CEO. Throughout his tenure he has been making top management changes and has slowly addressed many of the problems facing the company, he has not, however, appeared to be a take charge executive and has often surrounded himself in a cocoon with a small group of close executives. According to a story by Eric Dash in today’s New York Times,

“We have made enormous progress in 2009,” Mr. Pandit said on Tuesday. The question is whether Citigroup and its leader are progressing quickly enough to satisfy restive employees and shareholders. Even some Citigroup executives say privately that they are worn out after a seemingly endless stream of late-night calls, emergency meetings and management turmoil.

… Given that showing, Mr. Pandit is under pressure to prove that the company can finally make money. Prince Walid bin Talal of Saudi Arabia, a major Citgroup shareholder, said last week in an interview with the Fox Business Network that he had told Mr. Pandit that the honeymoon was over. “Now it’s time to deliver,” he said.

The bank announced another terrible quarter the other day. while numbers were not a surprise, time is no longer on Mr. Pandit’s side.

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