Business

Citigroup CEO is going away for good
by Corina Ciubotaru

Another departure in the financial market, another hundred million dollars go for compensation. Charles Prince, CEO of Citigroup, is leaving the company following the fall in company stock prices. The news was eagerly awaited by the entire Wall Street after the company's not-so-great results and after the departure trend was started a few weeks ago by Stan O'Neal, CEO of Merrill Lynch. Prince is expected to leave with $100 million in stock awards, a pension and millions of shares valued at $37.73, while Citigroup is expected to split. Company shareholders say they intend to keep it in its current form, but financial analysts believe there should be a fair assessment of which company components are the most profitable and cut them out of the group. Some of the most likely components to be cut are the brokerage arm Smith Barney, the investment banking arm, its capital markets unit and its retail arm. It is expected that Citigroup cut its investments by $8 billion to $11 billion, a move that has upset investors and has lowered the stock price by more than $1. Shareholders are also angry that the company is in decline, so the new CEO will have his work cut out trying to nurse it back to health in this troubled market where ugly surprises happen every day. The new CEO is going to be chosen by a CEO search committee; among the candidates are BlackRock CEO Laurence Fink, Citigroup CFO Gary Crittenden and NYSE Euronext CEO John Thain.

related story: http://news.yahoo.com/s/ap/20071105/ap_on_bi_ge/citigroup;_ylt=AmNZh3z_prq_Lgrj0FBV7Ges0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:26 PM