Friction with Pandit pushes out top Citi executiveSeptember 23rd, 2008 - 8:04 pm ICT by IANS
New York, Sep 23 (IANS) Sallie L. Krawcheck, a high ranking executive at Citigroup, has been ousted after months of friction with its chief executive Vikram S. Pandit. Krawcheck, 43, who led the global wealth management division, had disagreed with Pandit over the direction Citigroup was taking, its management structure and the settlement of claims over investor losses, the New York Times reported quoting unnamed Citigroup officials.
Instead of sacking her, India-born Pandit offered Krawcheck a senior advisory role - chairwoman of global wealth management - and she formally turned it down Monday
Krawcheck’s exit had been on the cards as soon as Pandit took over last December. Groomed by Pandit’s predecessors, she did not fit easily within the team Pandit put in place.
Among their disagreements, the Times said, while Pandit pushed for a new management structure based on geographic regions for quicker decision-making. Krawcheck believed it would create confusion and more bureaucracy.
Pandit hoped to increase profit by divesting more of Citigroup’s investment banking products through its Smith Barney brokers, while Krawcheck believed financial products from a wide range of firms was ultimately better for clients and would pay off down the road.
Krawcheck does not have a new job for now.