Citi’s Wall Street Rebound: How Vis Raghavan Became a CEO Contender
When Vis Raghavan heard that Citigroup Inc. Chief Jane Fraser was struggling to find someone to oversee investment banking last year, he called her with an audacious pitch: The London-based banker, whose star was dimming at Jamie Dimon’s JPMorgan Chase & Co., said he could work wonders for Citigroup’s franchise.
The Audacious Pitch
Fraser’s decision to hire him after just a few days of talks — including his quick flight to meet her in New York — appears to be paying off. The hard-charging banker’s arrival last year has energized the division, pushing his team to relentlessly pursue deals while cutting underperformers to make way for marquee hires.
The Turnaround
Citigroup has scaled the M&A advisory ranking and displaced rivals on at least two recent deals. And it’s not just the bank’s fortunes that are rising. Raghavan, whose lucrative welcome package lines him up to become Citigroup’s biggest individual shareholder, has emerged as a potential candidate to succeed Fraser one day, with some observers viewing his ability to revive the banking division as a test run for that role.
A Notable Turn
It’s a notable turn for a banker whose abrasive style had alienated some top leaders at his former employer. When JPMorgan shook up its ranks to position senior executives as potential Dimon successors early last year, Raghavan wasn’t among them. Negative feedback about his demanding personality also helped rule him out from another more senior banking position, according to people familiar with the matter, who asked not to be identified discussing private information.
Raghavan’s Rise
Now, Raghavan, 58, sits on Citigroup’s executive management team and is the only person with the executive vice chair title. He’s also the firm’s second-highest paid executive with a package of $22.6 million last year. And to compensate him for rewards accrued at JPMorgan, Fraser agreed to a $52 million make-whole award to be paid over seven years from his arrival at Citigroup, largely in deferred equity.
Insider’s View
In the words of one JPMorgan insider, Raghavan’s switch to Citigroup might be the greatest trade a banker ever made. Representatives for Citigroup and JPMorgan declined to comment.
Fraser’s Restructuring
Fraser is forging ahead with the firm’s biggest restructuring in decades. She has ditched storied businesses and shaken up sprawling operations to help boost profitability and turn around a stock that long lagged behind rivals.
Personnel Decisions
Some personnel decisions have come at the expense of other aims. The bank — which was first among the largest US lenders to name a woman as CEO — contacted female candidates for the role Raghavan later landed, one of the people familiar said. In the end, all five key business units at Citigroup remain run by men.
Raghavan’s Team
Since Raghavan started in June last year, he’s beefed up the unit with dozens of bankers at the managing director level — almost all of them men. Among his hires were close JPMorgan allies Achintya Mangla, who oversees financing, and Drago Rajkovic and Guillermo Baygual to co-lead mergers and acquisitions.
Citigroup’s Future
Citigroup ended last year fourth in M&A advisory in Bloomberg’s league table — a position it hadn’t reached since 2019 and now still holds — after surpassing Bank of America Corp. Citigroup this year also beat out JPMorgan to be adviser to Johnson & Johnson on its $14.6 billion purchase of Intra-Cellular Therapies Inc., which stands as the biggest biopharma deal in more than two years.
Raghavan’s Future
Helping Raghavan’s cause is that he has the ear of Fraser, according to some of the people. She told investors in April last year that Raghavan will bring ‘added intensity’ to the franchise. That intensity could help take him to the top of the bank.
If property records are anything to go by, Raghavan, who has a penchant for high-end Italian ties from the firm Battistoni, has invested in a New York future. Last year, the longtime London resident bought a Manhattan penthouse for $15 million that was once rented by the rapper Bad Bunny.
Meanwhile, back at JPMorgan, a new moniker has emerged to describe colleagues most likely to depart for Citigroup: FOV, or ‘Friend of Vis.’
For Indian investors and traders, the story of Vis Raghavan’s rise to prominence serves as a reminder of the importance of adaptability and strategic decision-making in the fast-paced world of finance. As the Indian stock market continues to evolve, it’s essential to stay informed about global trends and developments that can impact investment decisions.
Some of the key takeaways from Raghavan’s story include the need for a strong network, a willingness to take calculated risks, and the ability to adapt to changing market conditions. These lessons can be applied to the Indian stock market, where investors are constantly looking for ways to stay ahead of the curve.
In conclusion, Vis Raghavan’s journey from a struggling banker to a potential CEO contender is a testament to the power of determination and hard work. As the Indian stock market continues to grow and evolve, it’s essential to learn from the experiences of global leaders like Raghavan and apply those lessons to make informed investment decisions.
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