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Krawcheck Out as Citigroup CFO

In a move Citigroup describes as a promotion, Sallie Krawcheck now will head up the Global Wealth Management Division, the division run by her pred...
Stephen TaubJanuary 22, 2007

Sallie L. Krawcheck is relinquishing the title of CFO of Citigroup.

The financial services giant said Monday that Krawcheck will become chairman and chief executive of the company’s Global Wealth Management Division once her current position is filled.

In a press release, the company described the move as a promotion for Krawcheck. Yet, in her new position, Krawcheck will replace Todd Thomson, himself the banking giant’s former CFO until Krawcheck replaced him in November 2004. At the time, CEO Charles Prince was quoted as saying both executives were “legitimate contenders” for either the CEO or chief operating officer position. The company said in a separate release Monday that Thomson is leaving Citigroup to pursue other interests, effective immediately.

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Robert Druskin, Citigroup’s COO, will oversee Global Wealth Management on an interim basis until Citigroup fills Krawcheck’s CFO slot.

In recent months, Krawcheck and other top management, including Prince, have been under attack for the company’s lackluster performance.

“Sallie has done a terrific job as our Chief Financial Officer over the past two years, putting a capital allocation process in place, enhancing balance sheet management, and helping me redirect the company’s strategy,” said Prince, in a statement. “She distinguished herself as an operating manager at Smith Barney, leading that business forward at a critical time in our company’s history by accelerating its transition to a full-wealth management model and reestablishing excellence in our research operation, while maintaining industry-leading margins.”

Krawcheck joined Citigroup in October 2002 as chairman and CEO of Smith Barney. When she took over as CFO in 2004, she was also given responsibility for the company’s strategic planning, a dual role that some critics have questioned. As head of the Global Wealth Management division, Krawcheck will again oversee Smith Barney, as well as the Citigroup Private Bank, and Citigroup Investment Research.

Prior to joining Citigroup, Krawcheck was chairman and CEO of Sanford C. Bernstein & Co.

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