Citi's CEO steps down after board clash

  • Citigroup’s Vikram Pandit stepped down as chief executive on Tuesday following months of tension within the board.

    The bank's board of directors named Michael Corbat as Citigroup's new CEO.

    Pandit told Reuters news agency that the decision to leave was on his own accord, adding that he had been contemplating the move for some time.

    According to several sources, Pandit's exit comes after months of tension with Chairman Michael O'Neill over issues ranging from compensation to the role of Chief Operating Officer John Havens.

    On Tuesday, Havens also resigned.

    Though Pandit’s decision surprised investors, Citigroup shares rose as much as 2 percent.

    During his time at the third-biggest U.S. bank, Pandit was known to have opposed any breakup of the bank, which money managers believed would boost shareholder value.

    Citigroup shares ended the day’s trade up 1.6 percent at $37.25.