Why citi's vikram pandit resigned: my hypothesis

Getty Images The resignation of Citigroup's Vikram Pandit: it's about money and strategy. Nothing else makes sense. Let's try to create a hypothesis that fits the facts. The

facts are that Citi's CEO resigned abruptly a day after earnings came out. This does not appear to be (as he claims) a thoughtful separation which was his idea. It looks more like a

shotgun divorce. (_Read more_: Pandit Tells CNBC: I Was Not Forced Out of Citigroup ) Here's a plausible scenario: the earnings came out, Mr. Pandit met with the board, he said,

"Look, here's the earnings, they are improving, I am reducing the Citi Holdings assets, and we are on a stronger capital footing. Let's discuss: 1) my strategy and what I want

to do, and 2) my compensation." (_Read more_: 'He Was Forced Out': Cramer ) And Chairman Michael O'Neill, or others on the board, pushed back. And it blew up. He either

walked out, or was dismissed. (_Read more_: ) Over what? Over strategy and/or compensation. We know, for example, that Citi's plan to increase its dividend was rejected by the Federal

Reserve — that was a centerpiece of management's plan. And compensation? A majority of shareholders voted against a plan earlier this year to pay Pandit and other executives a fixed

percentage of Citi's profits; the board said it would heed that vote. But no revised compensation plan was ever announced. Other possible causes: pressure from regulators (doesn't

seem to be any, although Citi would certainly want to improve relationships with regulators), and a "smoking gun" or Libor issue (would have been disclosed already) — seem less

likely. _—By CNBC's Bob Pisani_ _____________________________ BOOKMARK CNBC DATA PAGES: * The Dow 30 — in Real Time * Oil, Gold, Natural Gas Prices Now * US Dollar, Minute by Minute

_____________________________ _Want updates whenever a Trader Talk blog is filed? Follow me on Twitter: twitter.com/BobPisani._ _Questions? Comments? [email protected]_