I’m a sucker for combative exchanges between analysts and CEOs. Does my heart good to see analysts get teeth and take ‘em on. From last night’s Citigroup call, here is Deutsche Bank analyst Mike Mayo tussling with Citigroup CEO Chuck Prince.
Michael Mayo: Chuck said this was the year of no excuses. You guys say the results are disappointing. So what are the repercussions at the level of the office of the chairman?
Charles Prince: Well, Mike….If you look at our results this quarter, no one can be happy with the results in our fixed-income business or with the results that relate to that. But I think if you are able to look at the other parts of our business, if you look at the strategic plan that we are executing on, I think any fair-minded person would say that strategic plan is working.
MM: Well, one of your main targets for this year was to grow revenues faster than expenses; and that is not going to pan out. This could be the third year in a row where that doesn’t pan out.
CP: Obviously, we want revenues to grow faster than expenses. It is true in many of our businesses. As I said, we had a very severe dislocation in revenues in our markets and banking business, one that I am not sure any fair-minded person would see a way to lower expenses rapidly enough to offset that in a five-week period.
MM: I saw [Citi executive Robert Rubin] quoted in the press saying that your job should be safe for four years from now. Did the board kind of reaffirm your [CEO] status for the next several years? Or what degree was your job title reinforced?
CP: I don’t think, Mike, it would be appropriate for me to comment on what Bob said or about what the board might be thinking in that regard.
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Mayo has it right now and he’s had it right for 20-years in the banking space … Prince has to go ::: he’s a poor leader and terrible manager !!!