Surprise at Citigroup as two senior executives walk out

SPECULATION was growing last night over the shock resignation of controversial Citigroup boss Vikram Pandit.

Chief executive Pandit stunned investors by quitting with immediate effect after five tumultuous years at the helm in which the US bank’s share price has slumped by almost 90pc, while he scooped an estimated £162m in pay and perks.

Reports emerged yesterday that the resignation followed a boardroom clash in which Pandit was said to have been slammed over blunders and a pay row.

It came the day after the 55year-old cheered long-suffering investors by presenting betterthan-expected results for the three months to the end of September.

Pandit’s right hand man, chief operating officer John Havens, also stepped down.

Pandit, who also quit the board, claimed it was the ‘right time’ to step down. But observers have suggested there is more to the resignations than meets the eye, as Pandit’s name was removed from the company’s website within minutes of the announcement being made.

The former hedge fund manager has found himself increasingly at odds with investors over the bank’s plunging share price and a series of scandals. Matters came to a head when shareholders staged a rebellion in April over his £9.3m pay package for 2011.

Last month he agreed to a cutprice sale of the bank’s stake in a brokerage operated by Morgan Stanley. This resulted in it having to take a £3bn hit on its accounts.

Pandit was replaced by Michael Corbat, previously chief executive for Europe, Middle East and Africa.