CORRECTED-UPDATE 4-Citigroup consumer banking head Medina-Mora to retire

viernes 20 de febrero de 2015 19:26 GYT

(Corrects to say Medina-Mora's pay is the same for 2014 as 2013, not higher, in last paragraph)

By David Henry and Lauren Tara LaCapra

Feb 20 (Reuters) - Manuel Medina-Mora, who helped build up Citigroup Inc's Mexico business only to see it run into trouble after he stopped managing it day-to-day, will retire in June, the bank said on Friday.

Medina-Mora, who heads global consumer banking at Citigroup, was expected to retire before his 65th birthday in August, people familiar with the matter said. But the bank did not name a successor for Medina-Mora, which implies that Citigroup had not spent years planning for the move, analysts said.

The bank separately announced that its board had cut pay for Chief Executive Michael Corbat by 10 percent.

Taken together, the two moves suggest that Citigroup's board is pressing management to perform better after the bank posted a 49 percent decline in profits last year and failed a key regulatory test, analysts said.

"Michael O'Neill is the chairman of the board there, and he is absolutely on the scene, keeping the pressure on," said Mike Mayo, an equity research analyst at CLSA in New York.

Medina-Mora spent most of his decades-long banking career in Mexico, and was known as "Mr. Mexico" in Citigroup. He joined Banamex in 1971 and was CEO of the franchise when Citigroup bought it in 2001. He was promoted to head its Latin American region in 2004 and to lead Citigroup's global consumer banking business in 2010, remaining as Banamex chairman.

After the financial crisis, some executives inside the bank saw Medina-Mora as a possible future chief executive. But his ties to Banamex became a liability in recent years, after the bank's Mexican unit had problems ranging from bad loans from apparent fraud to a 2013 trading scandal.   Continuación...