FT.com / Companies – Pandit purchases Citi shares
News of Mr Pandit’s stock purchase, which adds to the 1m in restricted shares he was awarded in December, came as Citi moved to quash a boardroom revolt over Sir Win Bischoff, its chairman.
The 15-strong board issued a statement backing Sir Win and denying a report in The Wall Street Journal that some directors wanted to replace him with Richard Parsons, Time Warner’s chairman and Citi’s lead director.
But people familiar with the situation said some directors did consider replacing Sir Win, accusing him of inadequate oversight of Mr Pandit.
It seems to be a travesty that Mr Pandit is buying at a time when the shares are bound to fall(from the investors’ pooint of view) . I wouldn’t want to purchase a falling share either and employee plans need to provide that flexibility. Weill is the investor, Pandit is an employee.
However, executive compensation needs to tie in the CEO’s performance to the bank’s performance definitely and Pandit’s commitment does mean a lot to potential investors in Citi. IT’s about time Citi turned around as a scrip and this is a good foreboding.
Posted on November 14, 2008, in Bank Stocks, Financial Markets, Global, India, US and tagged Business, Economy, Finance, Financial Markets, India, Investments, US. Bookmark the permalink. Leave a comment.