Corbat added that Citi's net income had grown from $7 billion to nearly $20 billion from 2012 to 2019, and said that "we went from returning hardly any capital to returning nearly $80 billion in capital to our shareholders over the last six years.". He always has been an athlete at heart, even today. He has a passion for it and he spends as much time as he can participating. To be sure, other firms have long elevated women to powerful positions in recent years, but none has gotten so far as Fraser has now. For years, regulators have told Citigroup that its technology systems were subpar. It was effectively a two-horse race: Stephen Bird, who led Citigroup's consumer bank at the time, also told Corbat that he was fielding calls from interested parties and needed clarity. Citi filed a suit with the Southern District of New York, alleging that Brigade Capital Management LP, a lender to Revlon, refused to turn over the $175 million it received in loans from Citi, instead using the funds for its own use. Sign up for free newsletters and get more CNBC delivered to your inbox. Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. She was generally more popular internally than Bird, whose top-down style, fashioned during his years in Asia, rubbed some the wrong way. "Strategically this could prove an opportune time for a transition in leadership at Citi.". You might think it all pertains to the business world. ", "Timing wise, this is a surprise to us," Credit Suisse said of the news in an analyst note. As a direct result, most people that were in leadership positions in these companies made the decision to leave. This sent him to places like the Middle East, Africa and Europe as he worked to smooth things over whenever there was a problem. "Mike opted to deliver a better operating ratio rather than invest in the infrastructure.". Citi sues Revlon lender Brigade for not returning part of $900 million transferred mistakenly, What's more, research released earlier this year. The transition means Fraser, who has been viewed as a potential replacement for Corbat since October, will become the first female CEO of a major U.S. bank. The difference is, he’s worked his way up through the ranks working for the same company since he graduated from college. From there, he simply moved up through the company and today, he leads it. Fraser is a 16-year veteran of Citi who currently serves as its president and head of global consumer banking. But the timing of the latest announcement caught some analysts off guard. What's more, research released earlier this year by the nonprofit group Catalyst found that roughly fewer than one-third — just 31% — of senior or executive officials and managers working at finance or insurance institutions in the US were women. Citigroup said Thursday that its CEO, Michael Corbat, is retiring effective February 2021.His departure will conclude a 37-year run with the firm. We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development. Mr. Corbat has been honored by several civic and cultural organizations. "As CEO, Mike increased Citi's returns significantly, closing the gap with our peers," she concluded. During the 2008 financial crisis, many large companies, including Citigroup, found themselves facing possible ruin. Which Private Equity ETF Should You Invest In? Get this delivered to your inbox, and more info about our products and services. In fact, he doesn’t even have a tendency to move around from one department to another frequently. That hasn’t been the case with him. While he thoroughly enjoys the activity in and of itself, he enjoys simply being out in nature just as much. Forese, a 33-year veteran of Citigroup, was widely seen as CEO Michael Corbat's heir apparent, the person who would take over the third-biggest U.S. bank if something happened to Corbat. She has been elected to Citi's board, effective immediately. Michael L. Corbat is Chief Executive Officer of Citi, the world's global bank, with approximately 200 million customer accounts and activities in more than 160 countries and jurisdictions. One recent black eye was its accidental repayment of a $900 million loan to Revlon, the beauty and cosmetics company, just one day after Revlon was hit by a lawsuit over its restructuring tactics. Early life and education. If you really want to know more about this individual, read about 10 things below that set him apart, both in the business world and beyond. The 10 Best Cadillac Seville Models of All-Time. Michael L. Corbat is Chief Executive Officer of Citi, the world's global bank, with approximately 200 million customer accounts and activities in more than 160 countries and jurisdictions. But the second half of 2020 looks grim. "A fresh look is good in our view since the prior CEO failed to reach Citi's targets and move the company enough strategically," the note said, adding "with a woman at the top, Citi is leading by example in a world that seeks greater diversity.". 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People at Citigroup were so impressed with his performance that they allowed him to take over a division known for working on troubled assets. The bank would push back, telling the regulators it was an unfair assessment. Others have pushed back on that assertion, saying that investors didn't agitate for change and pointed out that Citigroup stock had touched $80 a share in January, before the coronavirus pandemic struck. Times Syndication Service. Mr. Corbat has been at Citi and its predecessor companies since his graduation from Harvard University with a bachelor's degree in economics in 1983. Please be advised that this site is not optimized for use with Microsoft Internet Explorer 6. Copyright © 2019. Even though he was dealt a tough hand, however, he made strategic decisions that in hindsight look like fumbles. Some are refusing to do so, and the matter is now tied up in court. "We will invest in our infrastructure, risk management and controls to ensure that we operate in a safe and sound manner and serve our clients and customers with excellence. Which Gasoline ETFs Should You Invest In? At the time, Corbat told insiders that he envisioned being Citigroup CEO for another two to three years. All rights reserved. "ValueAct was likely an outsized voice among investors to encourage change," Mike Mayo, the veteran bank analyst with a long, at-times contentious history of covering Citigroup, said in a phone interview. He believes in leaving the world a better place and as such, he’s involved in several Boards of Directors and Trustees. But when Citigroup accidentally delivered almost $900 million to lenders of Revlon, the company couldn't make that argument anymore. Mayo was also surprised, saying in a Thursday research note that "CEOs don't typically want to leave in the middle of a crisis, especially if upside is pending.". Michael L. Corbat is no longer serves as Chief Executive Officer, Director of the Company effective 2/2021. Michael L. Corbat, CEO of Citigroup, testifies before a House Financial Services Committee hearing on Capitol Hill in Washington More (Reuters) - Citigroup Inc Chief Executive Officer Michael Corbat will step down in February 2021, after 37 years with the bank, and will be succeeded by President Jane Fraser, making her the first-ever woman executive to head a major Wall Street bank. At 58 years old, he still actively participates in skiing and golf as frequently as possible. But after eight years at the helm, he has failed to deliver the returns that investors have come to expect of Wall Street banks.

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