Sanford Weill and John Reed, co-chairmen and chief executives of Citigroup Inc., say they are splitting management duties after working jointly on every facet of the newly formed financial conglomerate for the last nine months and trying to present themselves as leading with one voice and one mind.
With the world’s largest financial company enjoying solid financial performance for the last two quarters, Weill and Reed said making every decision jointly was time-consuming and sometimes awkward.
“We no longer feel the need to attend every meeting together or read all the same memos,” the two CEOs told the bank’s management committee. “Instead, we can better divide the job of leading this great company and simplify the decision-making process.”
The arrangement appears to give Weill the upper hand. The former Travelers Group chief will act as the focal point for the company’s operating businesses and finance. Reed, who ran Citicorp before the October merger, is taking charge of Internet projects, advanced technology and product development, human resources and legal issues. They will work together on risk management, credit and strategic planning and will continue as chairmen and co-CEOs.
They predict the changes will require more daily interaction and offer executives more clarity on whom to contact.
The executives also said their decision reflects the company’s brightened earnings outlook.
“We have made significant headway in integrating our operations and delivering on our promise of superior financial performance for our shareholders,” they wrote. “Citigroup is coming together faster than anyone imagined.”
