(By Balaseshan) Citigroup Inc. (NYSE:C) said its Chief Executive Vikram Pandit and Operating Chief John Havens have resigned effectively immediately, sending its shares down 3.03% in premarket trade. This follows the company's better-than-estimated earnings for the third quarter.
The board of directors said Vikram Pandit has stepped down as the company's Chief Executive Officer and as a member of the Board, effective immediately.
"Thanks to the dedication and sacrifice of people across Citigroup, we have emerged from the financial crisis as a strong institution. Citigroup is well-positioned for continued profitability and growth, having refocused the franchise on the basics of banking," said Pandit.
The board has unanimously elected Michael Corbat CEO and a director. Corbat previously served as Citigroup's CEO of Europe, Middle East and Africa, where he oversaw consumer banking, corporate and investment banking, securities and trading and private banking services.
"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. I could not be leaving the Company in better hands. Mike is the right person to tackle the difficult challenges ahead, with a 29-year record of achievement and leadership at this company," Pandit added.
The company further announced President and Chief Operating Officer, John Havens, who also served as CEO of Citi's Institutional Clients Group, has resigned. Havens said he had already been planning retirement from Citi at year-end but decided, in light of Pandit's resignation, to leave the company at this time.
The bank reported third-quarter EPS of $1.06 and revenue of $19.4 billion, excluding the impact of negative credit valuation adjustment (CVA)/ debt valuation adjustment (DVA) and a loss related to the Morgan Stanley Smith Barney (MSSB) joint venture.
Citi shares closed Monday's regular session at $36.66. The stock has been trading between $23.30 and $38.40 for the past 52 weeks.