Shares in this article
• Change of leadership at Citigroup is imminent
• Ex-CEO Sandy Weill is happy to have first woman at the top
• “Incredible opportunities” in the future
In mid-September, Citigroup announced that CEO Michael Corbat would retire in February 2021. The 60-year-old worked at the bank for 37 years and was at its head for about eight years. Jane Fraser is to be the successor, which is the first time a woman will direct the fortunes of a large US bank.
Citigroup founder looks forward to succession planning
Sandy Weill also enjoys this succession plan very much. Under the leadership of the now 87-year-old, the then Citicorp merged with the Travelers Group and thus Citigroup was formed in its current form. However, in 2003 he resigned as CEO and in 2006 as Chairman. However, he is still a shareholder in the third largest US bank by total assets and an important figure in the financial world.
As Weill now said on the US broadcaster “CNBC”, he considers Jane Fraser a “born leader” who can bring future growth to the bank: “I’m thrilled that you have chosen a woman, but I’m even more happy about it for choosing a woman who has done a phenomenal job at Citi for the past 16 years, in everything she could be responsible for. ”
Jane Fraser has been with Citigroup since 2004 and has headed the global private customer business since 2019. During her 16 years with the company, she had also headed the US retail banking business and private banking. In addition – and Weill explicitly pointed this out – the 53-year-old was in the meantime responsible for the strategy division as well as mergers and acquisitions.
Thanks to her previous experience, Fraser is well suited to head the bank, which recently came under pressure from the Corona crisis: “After Jane came to Citi, she was responsible for our strategy for about three years, and she was already for [McKinsey & Company] active so I think she knows a lot about strategy, but she also knows a lot about how to run a business in practice and she has empathy for people, “said Weill.” I think Citi has incredible opportunities in the future. ” he is therefore optimistic.
Praise for predecessors
The current Citi CEO Michael Corbat was criticized because under his leadership the share price had developed much weaker than that of its competitors. Citigroup has only been able to increase its price by 40 percent since October 2012, compared to price increases of around 140 percent at JPMorgan or around 150 percent at Bank of America.
Nonetheless, Chairman John Dugan had words of praise for Corbat in announcing the upcoming change in leadership: “The Board appreciates Mike’s many contributions to Citi and he will leave the company in a much stronger position than he found it”. And Sandy Weill now defended the outgoing manager and pointed out that he had “inherited quite a mess” from his predecessor.
Weill is bullish about the future of the bank: “I am happy to be a Citi shareholder with Jane in charge, and I was happy with Mike too. I think Citi is in a very good position is located. ”
Finanzen.net editorial team
More news about JPMorgan Chase & Co.
Image sources: Kiev.Victor / Shutterstock.com, Radu Bercan / Shutterstock.com