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 into, 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.

For more:

HuffPost

CEO Watch - Vikram Pandit, CitiGroup, Update #2

Damian Paletta and David Enrich wrote an article in the Wall Street Journal about growing pressure from the head of the FDIC, Sheila Bair, on executive management at CitiGroup. According to the reporters,

The Federal Deposit Insurance Corp. is pushing for a shake-up of Citigroup Inc.’s top management, imperiling Chief Executive Vikram Pandit, people familiar with the matter said.

The FDIC, under Chairman Sheila Bair, also recently pressed a fellow regulator to lower the government’s confidential ranking of Citi’s health — a change that would let regulators control the firm more tightly.

It is really difficult to determine how all these forces will ultimately play out and what they will mean for Pandit as well as a number of the executives under him. It is certainly possible his tenure may not extend much longer, we will just have to wait and see.

For more:

Reuters

CEO Watch - Vikram Pandit, Citigroup

The continuing financial saga at Citigroup continues to remain front page news.  The latest moves at the bank ( Smith Barney - Morgan Stanley JV, moves to further break up the bank) all seem to be counter to the strategy Pandit has been professing for some time.  As these changes move closer to reality and Pandit continues to lose supportive allies, e.g., former U.S. Treasury Secretary Robert Rubin (resigning as Citi board member), the pressure on Pandit will only get greater.    

Let it be said, Pandit inherited a nearly impossible situation when he came in as the new CEO but its getting far more difficult to see how he can remain in his position.  More and more the U.S. government seems to be a powerful force behind the bank’s latest moves.  We will just have keep watching as changes dribble out and pressure builds on Pandit.   Pandit’s greatest hope and possible salvation as CEO is to become a “true believer” in the current changes and push hard for more dramatic and quick changes.  He must acknowledge that the global financial supermarket that was Citi must now come to an end.  Sandy Weil’s vision for Citi can no longer be valid.  

To get a sense of what he might do, check out the Breakingviews.com section in today’s International Herald Tribune.  I hope he can find the way to make things happen for the bank.  

For more:  

Fierce Finance  

Reuters  

NY Times Dealbook 

Crains

Huffington Post 

Citi May Be Considering Replacing Chairman

According to the Wall Street Journal (sub req.) , who quoted unnamed sources, members of Citi’s C (NYSE) board are considering changing its chairman, Sir Win Bischoff.  According to the story,

The board wants closer oversight of the efforts of chief executive Vikram Pandit and his team…

 The Journal’s unnamed sources also speculated that Richard Parsons, chairman of Time Warner and a member of Citi’s board, is being considered as Bischoff’s replacement.  It would seem the bank could come up with a more judicious and appropriate candidate.  According to Felix Salmon on SeekingAlpha,

The one option being mulled right now — replacing Win Bischoff with Dick Parsons — is clearly taken straight from the deckchairs-on-the-Titanic playbook. Parsons, remember, is the man about whom Joe Nocera said that “all his professional life, he’s wanted to be seen as someone who never seems to break a sweat”. In any case, Bischoff isn’t the problem. The problem is that Vikram Pandit gave himself altogether too much time to get smaller, and then decided his best chance at salvation was to get bigger — by buying Wachovia. Now, it’s too late: the die has been cast. Will Citi buy Chevy Chase Bank? It really doesn’t make any difference either way.

While I do not find myself in complete agreement with Salmon’s overall sentiments, I do not find Parsons the right person for the challenge.  His allegiance to Pandit might actually serve as a hindrance to helping Pandit.  If the board replaces Sir Win they need to find someone who intends to go toe-to-toe with Pandit and his team. 

For more:  

The Deal.com (11/14 update)

Bloomberg

Biz Journal   

MarketWatch     

CEO Watch - Citigroup Update 2 - Pandit Gets the Nod

Vikram Pandit was appointed Citgroup's new CEO today. For details read Eric Dash's story in The New York Times piece. The bank also picked Winfried F. W. Bischoff, the acting chef executive, as chairman.

For more:

CNN Money (Fortune)
TimesOnline
Crain's New York
CNN Money
Washington Post
USA Today
BusinessWeek