Updated to include organizational chart and to correct information about Ned Kelly.
NEW YORK (
CEO Vikram Pandit elevated John Havens to president and chief operating officer on Wednesday, one of several promotions to align executive responsibilities with Citi's restructured business lines.
All of the major banking divisions will now report to Havens, effectively making him Pandit's No. 2. In a statement, Pandit called Havens "one of this company's strongest managers and best leaders," who's been "indispensable to the turnaround of Citi."
Before the announcement, Havens had served as CEO of Citi's Institutional Clients Group. He joined Citi in 2007, along with Pandit, when their hedge fund Old Lane LP was acquired by the bank. In Havens' new role, he will oversee implementation of Citi's long-term strategy as well as its day-to-day functions.
Citi COO John Havens
The move comes a day after Citi announced fourth-quarter results that disappointed Wall Street. Though the firm made tremendous progress winding down its noncore assets in 2010, weak trading revenue and a big charge from an accounting oddity resulted in Citi reporting a profit of 4 cents per share -- half of what analysts had expected. Revenue also came in shy of expectations, leading to a sharp selloff in Citi's shares on Tuesday, which ended back below the $5 mark.
However, analysts expected the bearishness to be temporary and, indeed, by Wednesday morning, opportunistic buyers had returned. Citi was gaining 1% at $4.85 in recent trading.
Pandit announced the management changes in a memo to employees along with other promotions of top-level executives. He said the new org chart would help him execute Citi's goals to "harness growth in emerging markets," improve technology and build strong client relationships, among other things.
"The new management structure is designed to help me -- and all of us in this company -- meet these priorities head-on and continue to execute on our core strategy," Pandit said in the note. "It will help improve our focus, make our organization more efficient and align talent where it is best utilized."
>>>Citi's new organizational chart
A dozen executives will report to Havens, including James Forese, who has been elevated from co-head of global markets to CEO of securities and banking; Francesco Vanni d'Archirafi, who oversees global transactions services; the regional CEOs of Europe, Middle East and Africa (EMEA), Bill Mills and Alberto Verme; the regional CEOs of Asia Pacific, Shirish Apte and Stephen Bird; and Hamid Biglari, the vice chairman of Citicorp, with a special focus on emerging markets and research; and Ned Kelly, a vice chairman, who's assuming an additional role as chairman of Citi's Institutional Clients Group.
In addition to Havens, several executives will report to Pandit. They are Manuel Medina-Mora, CEO of consumer banking; Mike Corbat, who oversees the noncore Citi Holdings division; Chief Risk Officer Brian Leach; General Counsel Michael Helfer; Citibank CEO Gene McQuade; and CFO John Gerspach.
Pandit also said in his memo that he will replace the executive and senior leadership committees with two new committees that he will chair. One will be the operating committee, managed by Havens, and the other will be a business development committee, managed by Kelly.
" We've worked hard to get where we are," Pandit said in his memo. "With the height of the crisis only two years behind us, prudence and vigilance remain required --as indeed they always will."
-- Written by Lauren Tara LaCapra in New York
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