The jump in Citigroup Inc.’s share price shows investors were pleased with the board’s decision to replace Chief Executive Officer Vikram Pandit, said John Mack, the former chairman and CEO of Morgan Stanley.
“There was a view clearly by shareholders that change was a good thing,” Mack told Erik Schatzker and Stephanie Ruhle on Bloomberg Television’s “Market Makers.” New York-based Citigroup rose 59 cents, or 1.6 percent, to $37.25 yesterday and were up to $37.89 at 10:29 a.m. today in New York.
“Clearly there was unhappiness with the board,” Mack said of Pandit’s departure. “At the end of the day, a CEO has to have a close relationship with his board.” Pandit was replaced by Michael Corbat, who previously led Citigroup’s business in Europe, the Middle East and Africa.
Mack, who joined private-equity firm KKR & Co. as a senior adviser in March, stepped down as chairman of Morgan Stanley at the end of last year, two years after ceding the CEO role he held at the Wall Street bank from 2005 to 2010 to James Gorman.