CEO Succession Planning Issues at Citigroup: Vikram Pandit's Exit

            
 
Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

Case Details:

Case Code: HROB158
Case Length: 14 Pages
Period: 2008-2013
Organization: CitiGroup
Pub Date: 2013
Teaching Note: Not Available
Countries: US; Global
Industry: Banking

To download CEO Succession Planning Issues at Citigroup: Vikram Pandit's Exit case study (Case Code: HROB158) click on the button below, and select the case from the list of available cases:

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

OR

Buy Now

Amount to be paid:



Prefer to pay in another currency ?
Select Currency for Payment



Exchange Rates: Click Here
Delivery Details: Click Here

Price:

For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Human Resource, Organization Behavior Case Studies
HRM Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Excerpts

Pandit's Entry into Citigroup

Pandit, born in 1957, in Maharashtra, India, completed his BS in Electrical Engineering from Columbia University in 1976. The next year, he completed his MS. He then joined Columbia Business School to earn an MBA in Finance in 1980 followed by a PhD in Finance in 1986. After a short stint as professor in Columbia University and Brock University in Canada, he joined New York-based Morgan Stanley in 1983 as an associate. Within seven years, he had become the Managing Director (MD) and Head of the US Equity Syndicate unit of Morgan Stanley. In 1994, he was promoted as the MD and Head of Morgan Stanley’s Global Institutional Securities division. In 2000, he was made the President and COO of its Global Institutional Securities and Investment Banking businesses... .

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

Citigroup Under Pandit

After becoming the CEO, Pandit focused on enhancing the capital base of Citigroup. In January 2008, Citigroup announced some key actions including raising US$12.5 billion of capital through the sale of convertible preferred securities; reducing the company’s quarterly dividend to US$32 per share; continuing the sale of non-core assets; and reducing its consumer-based holdings of mortgage-backed securities and other assets held in its Securities and Banking business...

Return to Profitability

In July 2010, Citi announced that it had received 13 major product and regional awards in the annual Euromoney Awards for Excellence including Banker of the Year award for Pandit. Commenting on this, Pandit said, "I am deeply honored that Euromoney has recognized the significant progress we are making at Citi."...

Pandit's Exit

On October 16, 2012, Pandit resigned and Corbat was made the CEO of Citigroup. Corbat had joined Salomon Brothers in 1983 after graduating from Harvard University with a bachelor's degree in economics. In 1998, following the acquisition of Salomon Brothers by Travelers Group and its subsequent merger with CitiCorp, Salomon Brothers became part of Citigroup. In his 15-year-long career in Citigroup, Corbat had served as Head of Citigroup’s Global Corporate Bank and Global Commercial Bank, CEO of Citigroup’s Global Wealth Management (consisting of Smith Barney and the Citi Private Bank), and CEO of Citi Holdings...

What Went Wrong?

Pandit’s shock exit attracted plenty of attention from industry experts. Although the company said that Pandit had resigned, analysts were of the view that actually, he had been fired. While some analysts applauded the Citigroup board for replacing Pandit with Corbat, others pointed to the corporate governance issues at Citigroup which had handled its CEO succession in such a messy manner. Moreover, the immediate resignation of Havens, the President and COO of Citigroup, along with Pandit also attracted criticism...

Looking Ahead

In December 2012, Corbat announced that the company would reduce annual expenses by around USD1 billion and cut around 11,000 jobs. The company expected that the “repositioning” would deliver USD900 million in cost savings in 2013 and USD1.1 billion per year afterwards. The company would take a USD1 billion pre-tax charge in the fourth quarter of 2012 and another USD100 million in 2013 related to the cuts...

Exhibits

Exhibit I: A Note on US Subprime Mortgage Crisis
Exhibit II: Business Segments at Citigroup
Exhibit III: Financial Highlights of Citigroup (2003-2012)
Exhibit IV: Citigroup's Board of Directors in October 2012
Exhibit V: Citigroup's Share Price during Pandit's Tenure
Exhibit VI: Breakdown of Citigroup's Repositioning Charges

 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Study, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Workbooks, Case Study Volumes.