After pouring his all into Citigroup,
Though he will leave the corner office, Weill, the embodiment of Citigroup through thick and thin, isn't walking out the door. At a spry 70, he will remain chairman until 2006 and has put in place an experienced internal team to follow through on his vision. "There's no question that Chuck and Bob will run the company," said Weill. "I'm grown-up enough to not get in the way." But Weill joked that he will be watching them from the chairman's office: "They better not screw up."
"It's going to be a different world for us," said Prince. However, Willumstad noted that, "There will be no change in philosophy or attitude."
Shareholders, including Weill and his 22.4 million shares (0.43% of the company), have done well by his leadership. Total compounded return since Commercial Credit's October 1986 initial public offering stood at 3,488% at Tuesday's close of $46.83. Shares of Citigroup fell $1.47, or 3.14%, to $45.36 following the news.
Over the same 17-year period, the S&P 500 stock index has appreciated 315% and shares of
Despite Weill and Citigroup's munificence for shareholders, the last two years have brought Citigroup's loyalty and honesty towards its customers into question. Even while announcing record earnings, the company has been the center of regulatory probes concerning
Weill, whose net worth exceeds $1 billion, saw his own reputation sullied by association and directly through allegations that he influenced former telecom analyst Jack Grubman in order to secure a spot in the
In response, Weill was one of the most visible and vocal Wall Street executives on corporate reform. He shook up the company's operating structure last summer and later brought in Sallie Krawchek to head up the recharged, consumer-focused Smith Barney operations. He also made statements against interlocking boards by stepping down from directorships at
The rest of this year, as we predicted (sort of) in December, will serve as Weill's farewell tour for business associates and employees. But shareholders, whom Weill served as chief executive for so many years, can take solace in the fact that Weill will still be minding the shop.