It was not clear whether the move was linked to Mr Pandit’s plans for fixing Citigroup hard hit by its exposure to mortgage-related investments to the tune of about $18 billion and shoring up its stock price, which has plunged 38 per cent this year. But DealBook, a New York Times blog, noted Thursday that Mr Druskin, a longtime adviser and friend to former CEO Charles O Prince III, spearheaded the reorganisation at the firm that led to 17,000 layoffs last spring.
Exceptional service
“I am sorry to see him leave, but after 16 years of exceptional service to Citi, he certainly has earned that right. I clearly understand and respect his decision,” said Mr Pandit, describing Mr Druskin as “an outstanding executive and an extraordinary individual.” “The company is in very good hands with Vikram as Chief Executive, Sir Win (Winfried F W Bischoff) as Chairman and all of you in our businesses, regions and functions; I can’t imagine a more talented or dedicated team,” said Mr Druskin noting that “with the company entering an important next phase, now seems right (time) to me” to leave.
The news was conveyed to Citi employees via internal memorandums from Mr Pandit and Mr Druskin, who would be retiring at the end of the year. DealBook also said that with the appointment of Mr Pandit as CEO, attention is increasingly turning to the question of whether he will break up the financial behemoth.
In an interview for BusinessWeek, Mr Pandit remained vague about whether asset-sales were on the table. One of his main focuses, Mr Pandit said, is “to look at every one of our businesses — individually and collectively, to make sure they’re right and positioned for the future we see in financial services.”