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NEW YORK - Citigroup yesterday named Vikram Pandit, head of its institutional clients group, as chief executive and said Win Bischoff would serve as non-executive chairman, effective immediately.
The announcement ends weeks of speculation over who would take the helm at the largest US financial services company.
Citi has been seeking a replacement for former CEO Charles Prince, who departed on November 5 under pressure from shareholders frustrated by Citi's laggard performance.
Robert Rubin, who has served as chairman during this interim period, will return to his previous duties as chairman of the executive committee. Bischoff, a director, has served as acting CEO.
Pandit formerly was Morgan Stanley's head of investment banking and capital markets, one of the biggest jobs on Wall St.
Yet the India-born executive has never run a public company, let alone one as big and complex as Citi, causing concern for some investors.
"It's disappointing. Pandit is probably a decent manager, but he is a segment manager. He is not a CEO," said William Smith, CEO of SAM Advisors, a Citi stock holder.
Citi's board, which came under fire as Prince-led Citigroup reported billions of dollars in credit losses, may face more criticism for what some investors have called a disappointing search.
By comparison, Merrill Lynch won praise as it attracted NYSE Euronext chief John Thain to replace its chief executive, Stan O'Neal.
"Think of the people they could have gotten for this role who didn't make themselves available or didn't want it. People with experience running a major money centre bank.
"People with experience running a massive corporation. And they couldn't get someone like that," said Henry Asher, president of Northstar Group, a New York-based money manager.
The news was announced moments before the US Federal Reserve cut benchmark interest rates by 0.25 per cent.
- Reuters
