Friday, April 9, 2010

Vikram Pandit sees the day when he will earn over $1/year

Citigroup is getting smaller, and maybe even better. Just 13 months ago, Citigroup’s chief executive, Vikram Pandit, was facing the unthinkable. After bailouts worth $45 billion, the federal government had become the largest shareholder of a bank that was once among the biggest on the planet.

Citigroup’s shares were selling at barely a dollar each, having fallen from about $20 a year earlier and $50 a year before that.
There was even talk of nationalisation, a move that would have wiped out shareholders and cost Pandit his job and his legacy.

Fittingly, New York magazine called Pandit the “Most Powerless Powerful Man on Wall Street”.

Today, Pandit is still at the helm, and through a series of small but important moves, he is quietly asserting his influence. Piece by piece, he is shedding complex businesses like the insurance and retail brokerage units, shrinking the bank’s balance sheet and stabilising its finances.

To read the full article, click here.

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