Pandit said that maintaining the dividend was a "board decision". He already is distantiating himself from the decision - a clear psychological sign the dividend cut is imminent.
True. Technically it is a board decision, but they look to the CEO for input and guidance. Pandit being new, and not having the chair job as did his predecessor, his influence will be less but still significant.
In his interview Pandit was clearly trying not to be too committal. He was not about to be roped and paint himself into a corner on something he may need to backtrack on later. He's keeping his options open until he's had a chance to conduct his analysis.
My guess: he'll come to the conclusion that a temporary dividend suspension is prudent for the long term best interest of the company. He'll then try to sell it to the board. The board will reluctantly go along with it. And I say "reluctantly" because they've already shown themselves to be short term thinkers, more concerned with optics and the superficiality of immediate gratification over longer term substance. Plus the intagibles, the ego bruising of having to backtrack on a position on the dividend cut to which they have been so adamantly opposed.
I do hope the BOD has gotten some spine since they rolled over for Chuck on his decisions over the past four years. Pandit and every CEO needs a BOD to challenge decisions. This one has been lacking in this area. Maybe after recent criticism they may have received some part of the message.
So I think Pandit will be business like in his decision--he will think of the company and its business prospects--weighing growth and risk. Give him some time. The dividend maybe cut but possibly offset by a stock dividend.
When you work with a board of directors the correct answer to the public is, "It's a board decision."
It's doesn't matter what goes on behind the scenes. That was and is the correct answer.
So, it's ridiculous to imply anything else.
the stock was trading above %42 when the bitch from CIBC started the DIV cut shitt while ago and now the stock under $31 even a DIV cut is alrady priced into the stock so go F$$K your selfs shorts
sorry, but the board led by Rubin know precisely the issues facing C. only the board can make this decision. the CEO is responsible for operational and financial decisions that maximize shareholder value. he is not reponsbile for determining how earnings are ultimately allocated. Pandit is the new kid on the block. He will try to right the ship. The board will handle the rest.