Weill drops plans to quit Citigroup early

NEW YORK -- Citigroup Inc.'s Sanford Weill yesterday said he'll complete his term as chairman of the biggest US financial-services company, abandoning plans to leave early and start a buyout fund.

''It has hurt me to read speculation that in pursuing any new venture, I might somehow find myself competing with Citigroup or acting contrary to the company's interests," Weill, 72, said in a memo to employees. ''Nothing could be further from my mind."

Weill's decision ends a standoff with directors, who rejected his attempt to retire early with over $1 million a year of benefits and perquisites intact, people familiar with the situation said last week. It also relieves chief executive Charles Prince of the distraction that the stir created days after president Robert Willumstad declared his resignation.

Citigroup's directors feared the kind of public backlash that Morgan Stanley's board has endured since lavishing a $77.4 million exit package on former chief executive Phil Purcell, the people said.

Willumstad, Citigroup's president and chief operating officer, said July 14 he would resign in September.