Sanford Weill, one of the most storied figures in modern finance, announced on Wednesday that he would be stepping down as chief executive of Citigroup Inc, the financial colossus he erected, at the end of the year.
Although he will remain as chairman until the spring of 2006, the announcement ends months of speculation about when Weill, who is 70, would set up a line of succession at Citigroup, the world's largest financial services company.
Charles Prince, 53, was named as Weill's successor. Prince had been tapped last September to take over Citigroup's Salomon Smith Barney investment banking and securities operations after regulators began investigating the firm for conflicts of interest in its investment research.
And Robert Willumstad, 57, who is currently president of Citigroup, was named chief operating officer.
Still, Weill will remain very much a power at the company. During an emotional meeting that industry analysts, reporters and Citigroup's more than 260,000 employees were able to hear on a Webcast, Weill emphasized that he would stay closely involved with the company.
Besides working with the board, he said he would call on government officials, work to expand the business overseas and do strategic planning.
Weill also said he would work closely with Prince and Willumstad until his retirement in 2006.
"I think I am mature enough to know not to get in the way of what they are going to do," Weill said in an interview after the meeting. "Let there be no question that these will be the guys running the business."
And he suggested that they had better not make any big mistakes.
The management changes come a day after Weill announced Citigroup's latest transaction, the purchase of Sears, Roebuck and Co's credit card business for about US$3 billion.
"It's a very tough act to follow," Prince said. "There's never going to be another Sandy Weill. I am excited and I am terrified."
The changes also follow Citigroup's agreement in April to pay US$400 million to settle charges that Salomon Smith Barney had provided misleading investment research.
Citigroup's payment was the largest individual part of a US$1.4 billion settlement involving 10 investment banks, federal securities regulators and the New York state attorney general over investment research practices.
In a reflection of securities regulators' concerns about the possibility of conflicts of interest at Citigroup, the settlement barred Weill from communicating with his firm's stock analysts about the companies they cover, unless a lawyer is present.
Analysts said that while Weill will still be a presence at the company, the announcement on Wednesday was indeed a clear transition of leadership at Citigroup.
"He can time his own exit, and I don't think he is making a partial exit," said Robert Albertson, principal and chief strategist at Sandler O'Neill & Partners.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source