[h=3]By CHRISTIAN BERTHELSEN And ANDREW R. JOHNSON[/h]Citigroup Inc.'s board appointed a nearly 30-year veteran of the company to take over as chief executive in the wake of Vikram Pandit's abrupt resignation.
Michael Corbat, who most recently ran the bank's Europe, Middle East and Africa operation since the beginning of the year, has been with the bank and its predecessor companies since 1983. He has been considered within the bank to be a top candidate to succeed Mr. Pandit, and he was a key figure in Citi's efforts to right itself in the wake of the financial crisis.
CitigroupMIchael Corbat
Before his current post, he was CEO of Citi Holdings, a portfolio of the bank's noncore holdings that was set up in the aftermath of the financial crisis. In that role, he oversaw the divestiture of more than 40 businesses. The bank said he also restructured some of Citi's consumer units, shedding $500 billion in assets, reducing balance sheet risk and freeing up capital for core operations. He has also run several other units of the bank.
In an internal memo announcing the changes, Mr. Corbat told Citi employees he would make "changes" after taking time to review the company and its structures.
"I am confident that we can realize Citi's full potential while serving clients and creating rewarding new opportunities for our employees," he wrote in the memo, which was reviewed by The Wall Street Journal.
The bank's announcement of the management change said Mr. Corbat was known within the company for "enhancing productivity, holding people accountable and practicing sound risk management."
Mr. Corbat graduated from Harvard University in 1983 with an economics degree, and was an all-Ivy League offensive guard on the school's football team. In a 1982 profile in the Harvard Crimson, he said he was already pursuing a career in investment banking rather than playing professional football, adding: "I'm just not psyched to be somebody's piece of meat somewhere."
Mr. Corbat's appointment as CEO was viewed as a positive move by Matthew Burnell, senior banking analyst for Wells Fargo Securities. Mr. Burnell called him "a Citi veteran with 29 years of experience at the company" who will help the company with his background as a "traditional banker"--an apparent reference to Pandit's prior career as an investment-bank executive at Morgan Stanley and a hedge-fund manager.
Michael Corbat, who most recently ran the bank's Europe, Middle East and Africa operation since the beginning of the year, has been with the bank and its predecessor companies since 1983. He has been considered within the bank to be a top candidate to succeed Mr. Pandit, and he was a key figure in Citi's efforts to right itself in the wake of the financial crisis.
Before his current post, he was CEO of Citi Holdings, a portfolio of the bank's noncore holdings that was set up in the aftermath of the financial crisis. In that role, he oversaw the divestiture of more than 40 businesses. The bank said he also restructured some of Citi's consumer units, shedding $500 billion in assets, reducing balance sheet risk and freeing up capital for core operations. He has also run several other units of the bank.
In an internal memo announcing the changes, Mr. Corbat told Citi employees he would make "changes" after taking time to review the company and its structures.
"I am confident that we can realize Citi's full potential while serving clients and creating rewarding new opportunities for our employees," he wrote in the memo, which was reviewed by The Wall Street Journal.
The bank's announcement of the management change said Mr. Corbat was known within the company for "enhancing productivity, holding people accountable and practicing sound risk management."
Mr. Corbat graduated from Harvard University in 1983 with an economics degree, and was an all-Ivy League offensive guard on the school's football team. In a 1982 profile in the Harvard Crimson, he said he was already pursuing a career in investment banking rather than playing professional football, adding: "I'm just not psyched to be somebody's piece of meat somewhere."
Mr. Corbat's appointment as CEO was viewed as a positive move by Matthew Burnell, senior banking analyst for Wells Fargo Securities. Mr. Burnell called him "a Citi veteran with 29 years of experience at the company" who will help the company with his background as a "traditional banker"--an apparent reference to Pandit's prior career as an investment-bank executive at Morgan Stanley and a hedge-fund manager.