Corporate Strategy Case Study

The Exit of Citigroup’s CEO Vikram Pandit

OR

Abstract:
The resignation of Vikram Pandit, CEO of Citigroup for about 5 years, came as a surprise to many analysts, fuelling a spate of speculations about the reason for his exit. The case covers the challenging times in which Pandit took over the stewardship of Citigroup and Citigroup’s performance during his time. The case also covers the speculations surrounding his exit with the focus on Corporate Governance, investors’ expectation, and executive pay.

Pedagogical Objectives:

• To analyze and discuss the circumstance under which Vikram Pandit was appointed as CEO.
• To discuss the performance of Citigroup under Vikram Pandit.
• To analyze the factors behind Pandit’s exit.
• To debate the role of shareholders in corporate governance.
• To debate the role of the CEO and the Chairman in corporate governance.
• To discuss whether there should be a Chairman and a CEO for a company or whether a single individual should be appointed as Chairman and CEO of the company.

Keywords : Banking and Credit, Bicentennial Year , Capital Purchase Program (CPP), Charles O. Prince III, Citi Branded Cards, Citi Holdings, Citicorp, Citigroup, City Bank, Convertible Preferred Securities, Corporate and Investment Banking, Diversified financial services, Federal Deposit ,Insurance Corporation (FDIC), Federal Reserve , Financial Crisis, Financial Products, First National City Bank, Foreign exchange trading, Global Consumer Banking, Goldman Sachs Group Inc, Grupo Financiero Banamex, Harvey Pitt, Institutional Clients Group, Integrity, International Bank Corporation, John Havens, Leadership, Michael Corbat, Michael O’Neill, Morgan Stanley, National Association of Securities Dealers (NASD), National City Bank of New York, Non-convertible preferred stock, Old Lane Partners, Public offerings, Regulatory cooperation, Resource allocation, Retail Banking , Retail Service Cards, Securities and Exchange Commission, Securities brokerage, Sheila Bair, Stanford I. Weill, Subprime Mortgage Crisis, Targeted Investment Program (TIP), Taylor , Transaction services, Travelers Group, Troubled Asset Relief Program (TARP), Vikram Pandit, wealth management, William Thompson