Citigroup Inc. (C) has reshuffled its senior management team. Citi has announced yesterday that Teresa A. “Terri” Dial will step down as the Chief Executive Officer of Consumer Banking in North America for personal reasons, and will become a senior advisor.
Her stepping down follows an external review of Citi’s management that questioned her managerial skills.
She will be succeeded by Manuel Medina-Mora. He has been appointed the Chief Executive Officer of Citi Consumer Banking for the Americas and the Chairman of Citi’s Global Consumer Council. He will continue with his role as the Chairman and CEO of Citi Latin America and Mexico.
Dial had served as the CEO of that unit since March 2008. Previously, she worked at Lloyds TSB and Wells Fargo & Co. (WFC).
The recession has significantly impacted Citi’s businesses. Among other things, its consumer banking operations in North America has experienced a substantial revenue downturn. The government ultimately stepped in to pull out Citi with $45 billion in bailout money from the Troubled Asset Relief Program (TARP) at the height of the credit crisis. Later, around $25 billion of that was converted into common stock, representing nearly 34% of its stake held by taxpayers.
Citi repaid the remaining $20 billion in bailout money in Dec. 2009, freeing the obligatory pay restrictions on its key executives. The pay rule restrictions were a major hindrance for Citi in retaining its skilled workforce.
Citi has also reshuffled its management in Japan. The company has appointed Darren Buckley as the Head of its Japan operations. He succeeds Douglas Peterson, who is returning to New York to shoulder responsibilities in a new role. Buckley’s position as the Chief Executive of Citibank Japan, the firm’s retail and corporate banking division, will also be retained.
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