A Farewell To Citigroup Weill Built A Giant A Deal At A Time
Mr. Speaker, I rise today to commend the now retired Citigroup chairman Sanford I. Weill for achieving the status as one of the most powerful financiers this Nation has ever seen. Mr. Weill is credited as being the architect of a global…
Mr. Speaker, I rise today to commend the now retired Citigroup chairman Sanford I. Weill for achieving the status as one of the most powerful financiers this Nation has ever seen. Mr. Weill is credited as being the architect of a global financial powerhouse from his many business deals and mergers, especially the merger of Citigroup and Travelers in 1998.
Sanford I. Weill is the true embodiment of the American dream. A youth growing up in Brooklyn during the 1940s, Weill changed the way business deals were brokered. The retirement of Sanford I. Weill has been called by many as an ``end of an era'', a time when Wall Street seemed to be increasingly dominated by hedge funds and private equity firms run by nameless and faceless yet powerful financial brokers. Weill is among the last of the classic deal makers who broke many of the rules and rewrote history on Wall Street as never seen before.
Mr. Weill does not plan to return to Citigroup and has since passed on the corporation to his successor, Charles O. Prince III the current chief executive.
Retirement for Mr. Weill now consists of an array of philanthropic endeavors such as doing work for the National Academy Foundation, a nationwide network of career-themed ``schools within schools'' that he established, Carnegie Hall, where he has been chairman for the last 15 years and the Weill Cornell Medical College. Weill also wishes to involve himself in health relief efforts for people in Africa, a continent with compelling needs to which Mr. Weill's compassion and success has been drawn and which can only benefit from his commitment and energy.
I am pleased to enter into the Congressional Record an article published in the New York Times on Tuesday April 18, 2006 entitled, ``A Farewell to Citigroup'', for its recognition of Mr. Weill for the many years that he has put into Citigroup and also for his commitment to philanthropy thereafter.
A Farewell to Citigroup
(By Julie Creswell and Eric Dash)
Entering his sun-filled office in Citigroup's Manhattan
headquarters, Sanford I. Weill punched a few buttons on a
computer near a window before looking over his shoulder and
smiling broadly. When asked if he had just looked at
Citigroup's stock price, he shrugged his shoulders as if to
suggest he could not help himself.
``It's up 35 cents; it's a good day,'' he noted.
For years, Mr. Weill and Citigroup were, for all intents
and purposes, synonymous. During decades of deal making, he
built one of the most powerful and influential financial
institutions in the world.
Today, at the annual Citigroup shareholder meeting at
Carnegie Hall, Mr. Weill, 73, will cross the stage and take
his final bow as chairman.
Looking tan and fit thanks to a new diet regimen (exercise,
no bread, no butter and, for good measure, no gin), a
spirited and joking Mr. Weill insisted that while he intended
to keep a close eye on the company and its stock price, he
was ready to retire.
``I think it's now time for me to turn the page and go to
the next chapter of my life,'' Mr. Weill said yesterday.
``I've hung around long enough as the chairman, and I think
the company will be well served by having the chairman and
the C.E.O. being the same person.''
Mr. Weill's successor, Charles O. Prince III, the chief
executive, assumes the post of chairman today. Citigroup, to
be sure, is not sending Mr. Weill away with nothing more than
a gold watch and a big thank-you. A black-tie invitation-only
party was held last night at the Temple of Dendur in the
Metropolitan Museum of Art.
About 350 of New York's political, financial and cultural
elite were expected to attend, including James Dimon of J. P.
Morgan Chase; Philip J. Purcell, the former chief of Morgan
Stanley; the Rev. Jesse Jackson; and the cellist Yo-Yo Ma.
Guests nibbled on tiny treats and toasted Mr. Weill's
storied career.
The celebration was as much about Mr. Weill's charitable
activities--for Carnegie Hall, the Joan and Sanford I. Weill
Medical College of Cornell and a national education
initiative--as it is about his leadership of Citigroup.
The party also seemed to suggest the passing of an era. At
a time when Wall Street seems to be increasingly dominated by
hedge funds and private equity firms run by nameless and
faceless yet undoubtedly powerful financiers, Mr. Weill, once
a volatile and insecure boy from Brooklyn, is a throwback. He
is among the last of the classic deal makers who broke many
of the rules and rewrote history on Wall Street.
As for Mr. Weill's retirement nest egg, it is all but
layered in gold. After earning nearly $1 billion from salary,
bonuses and options cashed in over the last decade, Mr. Weill
will receive a pension worth more than $1 million a year.
Under a 10-year consulting contract with Citigroup, he will
earn a daily rate of $3,846 for dispensing advice for up to
45 days a year. Citigroup will also cover the costs of a car
and driver, health and dental insurance for him and his wife,
Joan, and rent for an office in the General Motors Building,
as well as administrative support.
Mr. Weill, meanwhile, will continue to fly at no charge on
Citigroup jets for the next 10 years. (He voluntarily reduced
that benefit, which originally was to allow him free access
to the Citigroup fleet for life.)
One thing Mr. Weill insists he is not going to do in
retirement is start a private equity fund. Last summer, Mr.
Weill landed in a white-hot media glare after he approached
the board about starting such a fund. The board decided that
such an endeavor would be competitive and told Mr. Weill
that, if he left early to pursue it, he would have to forgo
some retirement perks. Mr. Weill ultimately decided not to
pursue the venture, and he said he had not changed his mind.
``They ended up doing me a big favor. Knowing my
personality, whatever I'm going to get involved in, that rush
is going to come again that we have to do it the best,'' Mr.
Weill said. ``I wanted to do something different, and this
gives me the opportunity to do it.'' Despite reports last
summer of growing tensions between him and his successor,
Mr. Weill said he believed the company--and his legacy--was
in strong hands.