Sallie Krawcheck
Encyclopedia
Sallie L. Krawcheck is the former president of the Global Wealth & Investment Management division of Bank of America
. GWIM includes Merrill Lynch and U.S. Trust, the largest wealth management business in the world at $2.3 trillion in client assets. She has turned around a number of troubled financial businesses in her career.
. She attended the exclusive Porter-Gaud School
. While in high school, she was a local track star, and in 1983, as a high school senior, she was honored as a South Carolina Presidential Scholar.. She then received a Morehead Scholarship to the University of North Carolina at Chapel Hill
where she received a degree in journalism
. In 1992, she obtained an MBA from Columbia Business School
, graduating "Beta Gamma Sigma
."
of Citigroup's (then new) Smith Barney
unit, for which she was named to Times 2002 list of "Global Influentials". The Smith Barney unit was set up in order to separate Citigroup's investment banking from its stock brokering and research operations, to avoid the appearance of a conflict of interest in those areas. Krawcheck was put in charge of 13,000 brokers and analysts of the new retail brokerage unit.
In 2004, Krawcheck was appointed Chief Financial Officer and Head of Strategy for Citigroup Inc. In efforts to streamline the company, she sold Citi Asset Management and Travelers Life Insurance. As a result, Institutional Investor named her one of the top three CFOs in the financial services industry, and she was also recognized in the role by US Banker magazine. She returned to a business role to replace a colleague who was asked to leave the company for inappropriately using company resources.
In 2007, Krawcheck was named CEO in charge of Citi’s wealth management business, which included returning to Smith Barney and adding the Citi Private Bank. At the time of her arrival, the Private Bank had been thrown out of Japan for sales practice issues; this, combined with continuing Citi regulatory issues, resulted in financial advisor attrition that was at an all-time high. She worked to change the corporate culture for Smith Barney’s financial advisors by overhauling the advisor pay program to create the number one advisor pay program on Wall Street, resulting in reduced advisor attrition and increased productivity.
Krawcheck left Citi on September 22, 2008. The move followed months of tension with Chief Executive Officer Vikram Pandit
, particularly as Krawcheck said that it was Citi’s responsibility to reimburse clients for defective investments distributed by Citi wealth management's brokers and bankers. Pandit and other chief officers at Citi disagreed, arguing that Citi had no legal obligation in the matter.
in 2009, Bank of America
hired Krawcheck to head the new division
. Although Bank of America then-chief executive Ken Lewis had attempted to cancel the deal in the weeks before it closed, fearing Merrill Lynch was in worse financial condition than previously known, Krawcheck led the unit to $3.1 billion in profits during her two years as president of the wealth management unit. In the second quarter of 2011, Krawcheck’s division increased net income by 54 percent, from $329 million to $506 million, while Bank of America posted an overall $8.8 billion loss.
Krawcheck also increased the number of financial advisors at Merrill, reversing an "exodus" of advisors from the firm. , Merrill employed more than 16,000 advisors, during a time when most rivals had seen their ranks shrink.
Krawcheck's position at Merrill was eliminated by chief executive Brian Moynihan
as part of restructuring, and Krawcheck left Bank of America on September 6, 2011. She received severance payments totaling $6,000,000.
named her as number seven in its list of The World's 100 Most Powerful Women of 2005. In 2008, she was named to Investment Advisor
magazine's IA 25, the list of the 25 most influential people in and around the investment advisory business.
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
. GWIM includes Merrill Lynch and U.S. Trust, the largest wealth management business in the world at $2.3 trillion in client assets. She has turned around a number of troubled financial businesses in her career.
Early life
Krawcheck grew up in Charleston, South CarolinaCharleston, South Carolina
Charleston is the second largest city in the U.S. state of South Carolina. It was made the county seat of Charleston County in 1901 when Charleston County was founded. The city's original name was Charles Towne in 1670, and it moved to its present location from a location on the west bank of the...
. She attended the exclusive Porter-Gaud School
Porter-Gaud School
Porter-Gaud School is an independent coeducational college preparatory day school in Charleston, South Carolina. Porter-Gaud has an enrollment of some 870 students in grades 1–12 and located on the banks of the Ashley River...
. While in high school, she was a local track star, and in 1983, as a high school senior, she was honored as a South Carolina Presidential Scholar.. She then received a Morehead Scholarship to the University of North Carolina at Chapel Hill
University of North Carolina at Chapel Hill
The University of North Carolina at Chapel Hill is a public research university located in Chapel Hill, North Carolina, United States...
where she received a degree in journalism
Journalism
Journalism is the practice of investigation and reporting of events, issues and trends to a broad audience in a timely fashion. Though there are many variations of journalism, the ideal is to inform the intended audience. Along with covering organizations and institutions such as government and...
. In 1992, she obtained an MBA from Columbia Business School
Columbia Business School
Columbia Business School is the business school of Columbia University in Manhattan, New York City. It was established in 1916 to provide business training and professional preparation for undergraduate and graduate Columbia University students...
, graduating "Beta Gamma Sigma
Beta Gamma Sigma
Beta Gamma Sigma or ΒΓΣ is an honor society for business students and scholars. Founded in 1913 at the University of Wisconsin, it has over 650,000 members, selected from over 500 chapters in AACSB-accredited business schools...
."
Sanford C. Bernstein
Krawcheck started her business career as an equity analyst, rising to become chairman and CEO of sell-side research firm Sanford C. Bernstein & Co.. She had a reputation for impartial advice that caused Citigroup to seek her to deal with criticisms over conflicts of interest within different parts of Citigroup.Citigroup
Krawcheck was named CEOChief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of Citigroup's (then new) Smith Barney
Smith Barney
Morgan Stanley Smith Barney is a retail brokerage joint venture between Morgan Stanley and Citigroup.On January 13, 2009, Morgan Stanley and Citigroup announced that Citigroup would sell 51% of Smith Barney to Morgan Stanley, creating Morgan Stanley Smith Barney, which was formerly a division of...
unit, for which she was named to Times 2002 list of "Global Influentials". The Smith Barney unit was set up in order to separate Citigroup's investment banking from its stock brokering and research operations, to avoid the appearance of a conflict of interest in those areas. Krawcheck was put in charge of 13,000 brokers and analysts of the new retail brokerage unit.
In 2004, Krawcheck was appointed Chief Financial Officer and Head of Strategy for Citigroup Inc. In efforts to streamline the company, she sold Citi Asset Management and Travelers Life Insurance. As a result, Institutional Investor named her one of the top three CFOs in the financial services industry, and she was also recognized in the role by US Banker magazine. She returned to a business role to replace a colleague who was asked to leave the company for inappropriately using company resources.
In 2007, Krawcheck was named CEO in charge of Citi’s wealth management business, which included returning to Smith Barney and adding the Citi Private Bank. At the time of her arrival, the Private Bank had been thrown out of Japan for sales practice issues; this, combined with continuing Citi regulatory issues, resulted in financial advisor attrition that was at an all-time high. She worked to change the corporate culture for Smith Barney’s financial advisors by overhauling the advisor pay program to create the number one advisor pay program on Wall Street, resulting in reduced advisor attrition and increased productivity.
Krawcheck left Citi on September 22, 2008. The move followed months of tension with Chief Executive Officer Vikram Pandit
Vikram Pandit
Vikram S. Pandit is an Indian-born American business executive. He is the current CEO of Citigroup.-Early life:Vikram Pandit was born in Nagpur, India to an affluent Marathi family . His father, S B Pandit was an executive director at Sarabhai Chemicals in Baroda. He completed his schooling at the...
, particularly as Krawcheck said that it was Citi’s responsibility to reimburse clients for defective investments distributed by Citi wealth management's brokers and bankers. Pandit and other chief officers at Citi disagreed, arguing that Citi had no legal obligation in the matter.
Bank of America
Following the acquisition of Merrill LynchMerrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
in 2009, Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
hired Krawcheck to head the new division
Bank of America Merrill Lynch
Bank of America Merrill Lynch is the corporate and investment banking division of Bank of America. It provides services in mergers and acquisitions, equity and debt capital markets, lending, trading, risk management, research, and liquidity and payments management...
. Although Bank of America then-chief executive Ken Lewis had attempted to cancel the deal in the weeks before it closed, fearing Merrill Lynch was in worse financial condition than previously known, Krawcheck led the unit to $3.1 billion in profits during her two years as president of the wealth management unit. In the second quarter of 2011, Krawcheck’s division increased net income by 54 percent, from $329 million to $506 million, while Bank of America posted an overall $8.8 billion loss.
Krawcheck also increased the number of financial advisors at Merrill, reversing an "exodus" of advisors from the firm. , Merrill employed more than 16,000 advisors, during a time when most rivals had seen their ranks shrink.
Krawcheck's position at Merrill was eliminated by chief executive Brian Moynihan
Brian Moynihan
Brian Thomas Moynihan is an American lawyer, businessman and the President and CEO of Bank of America. He also joined the Board of Directors, following his promotion to President and CEO. He resides with his family outside of Boston, Massachusetts.-Early life:Moynihan was born in Marietta, Ohio...
as part of restructuring, and Krawcheck left Bank of America on September 6, 2011. She received severance payments totaling $6,000,000.
Accolades
ForbesForbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
named her as number seven in its list of The World's 100 Most Powerful Women of 2005. In 2008, she was named to Investment Advisor
Investment Advisor
The term Investment Advisor is an individual or firm who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities...
magazine's IA 25, the list of the 25 most influential people in and around the investment advisory business.