Sandy Weill and Citigroup
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Case Code: BSTR103 Case Length: 12 Pages Period: 1998 - 2004 Pub Date: 2004 Teaching Note: Available |
Price: Rs.300 Organization: News Corporation Limited Industry: Media & Advertising Countries : USA Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
"I have never in my life said anything was the culmination of a dream, because if you stop dreaming, I can't imagine what the world would be like."
- Sandy Weill, on his ambition, 1998.
"He is very personable, he goes over extremely well with individuals. He has a plain speaking style that is very well received internally."
- Diane Glossman, Analyst, Lehman Brothers, 2000.
Sandy Announces His Successor!
On July 16, 2003, Sanford I. Weill, better known as Sandy Weill (Weill), the CEO and Chairman of Citigroup, announced that he would step down as CEO by the end of the year. The 70-year-old Weill would remain chairman till 2006. With this news, the long-standing issue of succession at Citigroup was resolved. But the market didn't receive the news well and Citigroup's shares fell from $46.83 to $45.52 on the New York Stock Exchange, the day the announcement was made. Analysts said the fact that Charles Prince (the announced successor) was not as well-known as Weill in the investor community was the main reason for the sharp drop. The 45-year long Wall Street career of Weill was full of ups and downs; there were mega-mergers and controversies. He gained respect, honors, awards and made millions of dollars in his career. However, he was also criticized for his tough cost-cutting decisions, for firing people who disagreed with him and for not having a succession plan in place.
He started his career as a Wall Street runner and build up companies like Shearson, Travelers and Citigroup through mergers and acquisitions. In 2003, Citigroup was the world's largest financial institution with revenues of $100 billion and assets worth more than $1 trillion. Weill was remarkable for his pragmatic approach and quick decision-making. As one of Weill's friends put it, "Sandy's not a rocket scientist. But if you put 100 people in a room and give them a problem, Sandy will have the most practical solution, and he'll have it fast."3 Weill followed his gut feelings and rarely relied on reports and memos for decision-making. He managed his company by talking to the people working in it, and maintaining a good relationship with them. Weill received many awards and recognitions in his career. He was named 'CEO of the Year' by Chief Executive magazine in June 2002. In the same year, Columbia University awarded him its 'Distinguished Leader of the Year' Award in Business. He was on the boards of several companies like Du Pont (1998 to 2001), AT&T (1998 to 2002) and United Technologies Corp (1999 to 2003)....
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