Citi's Wall Street rebound turns Raghavan into CEO contender

Core Insights - Citigroup's investment banking division is experiencing a revitalization under the leadership of Vis Raghavan, who was recruited by CEO Jane Fraser to enhance the bank's performance in a competitive market [3][4][5] - Raghavan's aggressive approach has led to significant personnel changes, including the hiring of numerous bankers from JPMorgan, and a focus on improving deal-making capabilities [10][12][13] - The bank has seen a notable increase in M&A advisory rankings and investment banking revenue, with a 13% rise in fees year-over-year in the second quarter [15][16][17] Leadership Changes - Vis Raghavan was brought in to lead Citigroup's investment banking after a successful pitch to CEO Jane Fraser, indicating a strategic shift in leadership [3][4] - Raghavan's compensation package includes a $22.6 million salary and a $52 million make-whole award, positioning him as a potential future CEO candidate [7][8] Performance Metrics - Citigroup has climbed to fourth place in M&A advisory rankings, a position not held since 2019, and has recently outperformed JPMorgan in significant deals [16][17] - The bank's stock has increased by 47% this year, outperforming JPMorgan and Goldman Sachs, indicating a positive market response to the changes [17] Cultural Shift - Raghavan has instilled a culture of accountability within the investment banking division, emphasizing performance and deal-making efforts [13][14] - The hiring strategy has favored male candidates, leading to concerns about diversity within the leadership ranks, as all five key business units are still led by men [9][10] Strategic Focus - Raghavan's strategy includes cutting underperforming staff and recruiting top talent to enhance the bank's competitive edge in investment banking [4][11] - The CFO noted that Raghavan has critically assessed the cost structure of the business, identifying areas for talent improvement [15]