Citigroup Inc. directors ousted Chief Executive Officer Vikram Pandit after concluding his mismanagement of operations caused setbacks with regulators and cost credibility with investors, Bloomberg News reported today. Episodes that led the board to replace Pandit with Michael Corbat included the rejection by regulators in March of a plan to boost shareholder payouts. Citigroup’s $2.9 billion writedown on the Smith Barney brokerage unit and a two-level cut of its credit rating by Moody’s Investors Service also contributed. Directors had discussed whether to replace Pandit for months, even before the appointment of Michael E. O’Neill as chairman in April. O’Neill, a board member since 2009, and other directors became increasingly frustrated with Pandit’s performance, and Corbat told the bank’s 262,000 employees yesterday that a shakeup may follow.
