Sallie Krawcheck

Last updated
Sallie L. Krawcheck
Chitra Wadhwani (CBS), Thomas Danaher (Sheets.com), Sallie Krawcheck and Jon Ledecky (UTA Media Partners).jpg
Krawcheck in 2012
Born (1964-11-28) November 28, 1964 (age 58)
Alma mater University of North Carolina at Chapel Hill (B.A.)
Columbia University (M.B.A.)
Known for Ellevate Network
TitleCo-founder and CEO, Ellevest
Term2015-
SpouseGary Appel
Children2

Sallie L. Krawcheck (born November 28, 1964) [1] is the former head of Bank of America's Global Wealth and Investment Management division and is currently the CEO and co-founder of Ellevest, a digital financial advisor for women launched in 2016. [2] [3] [4] She has been called "the most powerful woman on Wall Street." [5] [6] [7]

Contents

Early life and education

Krawcheck grew up in Charleston, South Carolina. She has described her childhood as "half Jewish, half WASP-y". [8] She attended the Porter-Gaud School. [9] While in high school, she participated on the school's track and field team. In 1983, as a high school senior, she was honored as a South Carolina Presidential Scholar. She received a Morehead Scholarship to the University of North Carolina at Chapel Hill, and graduated with a degree in journalism. [2] In 1992, she obtained an MBA from Columbia Business School. [2] [10]

Career

Sanford C. Bernstein

Krawcheck started her business career as equity analyst covering the Wall Street firms, rising to become director of research and then chairman and CEO of sell-side research firm Sanford C. Bernstein & Co. [11] She had a reputation for impartial advice and her decision to take Bernstein out of the lucrative, but conflicted underwriting business, caused Fortune to dub her "The Last Honest Analyst." [12] Citigroup sought her out to deal with criticisms over conflicts of interest within its wealth management and research business after charges were brought against the company by Eliot Spitzer. [13]

Citigroup

Krawcheck was named CEO of Citigroup's (then new) Smith Barney unit, for which she was named to Time's 2002 list of "Global Influentials" and Fortune's Most Influential Person Under the Age of 40. [14] [15] 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 division. [13]

In 2004, Krawcheck was appointed Chief Financial Officer for Citigroup Inc. [16]

In 2007, Krawcheck was named CEO 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 as an early advocate of a fiduciary standard for the brokerage industry. [17] [18]

Krawcheck left Citi on September 22, 2008, following months of tension with chief executive officer Vikram Pandit due to the fact that Krawcheck argued for Citi to reimburse clients for defective investments distributed by Citi wealth management's brokers and bankers. [19] Pandit and other chief officers at Citi disagreed, arguing that Citi had no legal obligation in the matter. [17] [20]

Bank of America

Following the acquisition of Merrill Lynch 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, [21] Krawcheck led the unit to $3.1 billion in profits during her two years as president of the wealth management unit. [17] In the second quarter of 2011, Krawcheck's division increased net income by 54 percent, from $329 million to $506 million, [22] while Bank of America posted an overall $8.8 billion loss. [23]

Krawcheck's position at Merrill was eliminated by the firm's new chief executive, Brian Moynihan, as part of restructuring, and Krawcheck left Bank of America on September 6, 2011. [19] She received severance payments of $6 million. [24]

Ellevate Network

Krawcheck acquired 85 Broads Unlimited LLC. (which is now doing business as Ellevate Network) in 2013 and is now the chairwoman of the organization. [3] [25]

Ellevest

Krawcheck is the co-founder and CEO of Ellevest, a digital investment platform for women. Ellevest's goal is to work to close the gender investing gap in the U.S. by "redefining investing for women." [26]

Accolades

Krawcheck appeared in the top ten Forbes list of The World's 100 Most Powerful Women in 2005 and 2006. [27] [28] 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. [29] She was recognized by the World Economic Forum as one of its Young Global Leaders. [30] In 2012, she was credited by The Daily Beast as remaining one of the "rare honest voices on Wall Street." [31] In December 2017, she was listed in a TechCrunch feature on 42 women succeeding in tech that year. [32]

Krawcheck established a needs-based scholarship at her former secondary school, Porter-Gaud, awarding full tuition to students of exceptional aptitude. [33]

Related Research Articles

<span class="mw-page-title-main">Morgan Stanley</span> American financial services company

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 41 countries and more than 75,000 employees, the firm's clients include corporations, governments, institutions, and individuals. Morgan Stanley ranked No. 61 in the 2021 Fortune 500 list of the largest United States corporations by total revenue.

<span class="mw-page-title-main">Citigroup</span> American multinational investment bank and financial services corporation

Citigroup Inc. or Citi is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomerate Travelers Group in 1998; Travelers was subsequently spun off from the company in 2002. Citigroup owns Citicorp, the holding company for Citibank, as well as several international subsidiaries. Citigroup is incorporated in Delaware.

Morgan Stanley Wealth Management is an American multinational financial services corporation specializing in retail brokerage. It is the wealth & asset management division of Morgan Stanley. 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 Citi Global Wealth Management. The combined brokerage house has 17,646 financial advisors and manages $2 trillion in client assets. Clients range from individual investors to small- and mid-sized businesses, as well as large corporations, non-profit organizations and family foundations.

<span class="mw-page-title-main">Salomon Brothers</span> Former American investment bank

Salomon Brothers, Inc., was an American multinational bulge bracket investment bank headquartered in New York City. It was one of the five largest investment banking enterprises in the United States and the most profitable firm on Wall Street during the 1980s and 1990s. Its CEO and chairman at that time, John Gutfreund, was nicknamed "the King of Wall Street".

<span class="mw-page-title-main">John Thain</span> American businessman

John Alexander Thain is an American financial executive and investment banker. He served as president and co-COO of Goldman Sachs, and then CEO of the New York Stock Exchange. Thain then became the last chairman and CEO of Merrill Lynch & Co. before its merger with Bank of America. He was designated to become president of global banking, securities, and wealth management at the newly combined company, but resigned on January 22, 2009. Ken Lewis, CEO of Bank of America, reportedly forced Thain to step down after several controversies, such as the losses at Merrill Lynch which proved to be far larger than previously estimated, and the award of huge executive bonuses. Thain then served as chairman and CEO of the CIT Group. He is currently a board member of Uber, appointed by former Uber CEO Travis Kalanick on September 29, 2017.

<span class="mw-page-title-main">Primerica</span> American multi-level marketing insurance company

Primerica, Inc. is a company that provides insurance, investment and financial services to middle-income families in the United States and Canada. Primerica has been described as a multi-level marketing company.

Gretchen C. Morgenson is an American Pulitzer Prize-winning journalist notable as longtime writer of the Market Watch column for the Sunday "Money & Business" section of The New York Times. In November, 2017, she moved from the Times to The Wall Street Journal.

<i>Forbes</i> list of the Worlds 100 Most Powerful Women Ranking published by Forbes magazine

Since 2004, Forbes, an American business magazine, has published an annual list of its ranking of the 100 most powerful women in the world. Edited by prominent Forbes journalists, including Moira Forbes, the list is compiled using various criteria such as visibility and economic impact. In 2022, the gauge was "money, media, impact and spheres of influence". The top 10 per year are listed below.

<span class="mw-page-title-main">Vikram Pandit</span> Indian-born American banker

Vikram Shankar Pandit is an Indian-American banker and investor who was the chief executive officer of Citigroup from December 2007 to 16 October 2012 and is the current chairman and chief executive officer of The Orogen Group.

<span class="mw-page-title-main">Kathleen Murphy (executive)</span> American lawyer and business executive (born 1963)

Kathleen Ann Murphy is an American lawyer and business executive. She is the President of Fidelity Personal Investing, a unit of Fidelity Investments. In this role Murphy has responsibility for Fidelity's retail brokerage, mutual fund, IRA, insurance and managed accounts businesses. It was announced January 21, 2021 that Kathy will be retiring from Fidelity Investmests.

<span class="mw-page-title-main">James P. Gorman</span> Australian-American financier (born 1958)

James Patrick Gorman is an Australian-American financier who is the chairman and chief executive officer of Morgan Stanley. He was formerly Co-President and Co-Head of Strategic Planning at the firm.

<span class="mw-page-title-main">Meredith Whitney</span> American businesswoman

Meredith Ann Whitney is an American businesswoman called “The Oracle of Wall Street” by Bloomberg. She is known for successfully forecasting the financial crisis of 2007–2008 and is a financial analyst.

<span class="mw-page-title-main">Ellen Alemany</span> American business executive

Ellen Rose Alemany is an American business executive. She is the Vice Chairwoman of First Citizens BancShares. She was formerly the chairwoman of CIT Group.

<span class="mw-page-title-main">Michael Corbat</span> American banker (born 1960)

Michael Louis "Mike" Corbat is an American banker who served as the chief executive officer of Citigroup from 2012 to 2021. His 2012 welcome from The New York Times described him as a "Jack-of-All-Trades".

<span class="mw-page-title-main">Deborah Chase Hopkins</span> American business executive

Deborah C. Hopkins is CEO of Double Chase Advisors and is an independent corporate board member. She was Citigroup's Chief Innovation Officer, a position she held beginning in 2008, and CEO of Citi Ventures beginning in 2010. She retired from Citigroup, effective December 31, 2016.

Janet Hanson is an American financier and the founder of 85 Broads, a global network community of 30,000 women. In 1986 she became the first woman to be promoted to sales management of Goldman Sachs.

<span class="mw-page-title-main">Jane Fraser (executive)</span> British-American banking executive (born 1967)

Jane Fraser is a British-American banking executive who is the chief executive officer (CEO) of Citigroup, a position she has held since March 2021. Educated at Girton College, Cambridge, and Harvard Business School, she worked at McKinsey & Company for 10 years, rising to partner prior to joining Citigroup in 2004. In 2019, she was named president of Citigroup and CEO of its consumer banking division.

<span class="mw-page-title-main">Ellevate Network</span>

Ellevate Network is a Global Community of women committed to fostering and promoting gender equality in the workplace. The organization provides women and femme-identifying, non-binary individuals with a community to lean on and learn from through networking, online and offline education, inspiration, and opportunity. Founded in 1997 to bring high-achieving women in finance together, the network now serves women across industries and around the world. Its CEO is Maricella Herrera.

Ellevest is a robo-advisor investment platform and financial literacy program primarily for women. It was cofounded by Sallie Krawcheck and Charlie Kroll in 2014, with venture capital provided in part by Melinda Gates's Pivotal Ventures, Valerie Jarrett, and Eric Schmidt. As of 2021, it manages more than one billion dollars with over 120,000 users, about 90% of whom identify as women. Ellevest provides digital investing tools and financial guidance, as well as private wealth management for individuals, families, and organizations. Its gender-aware investment algorithm takes into account that women often have longer lifespans than men, and thus may need to save or invest more money to account for a longer retirement period. The algorithm also factors in that women typically hit their salary peaks earlier in life than men and typically have lower salaries due to the gender pay gap. Ellevest also allows its users to financially plan for income breaks or decreases, which can be necessary due to having children or providing elder care.

<span class="mw-page-title-main">Ida Liu</span> U.S. corporate executive from Citi Private Bank

Ida Liu is a Chinese American banking executive and currently the Global Head of Citi Private Bank, a position which she has held since April 2021. She previously headed Citi Private Bank in North America.

References

  1. ↑ U.S. Public Records Index Vols. 1 & 2 (Provo, UT: Ancestry.com Operations, Inc.), 2011.
  2. 1 2 3 "A Startup of Her Own". Newsweek. 2014-12-23. Retrieved 2017-12-08.
  3. 1 2 Marcinek, Laura (May 15, 2013). "Krawcheck to Acquire 85 Broads From Ex-Goldman Executive". Bloomberg Business. New York, New York.
  4. ↑ "Bank of America Hires Former Top Citigroup Executive". The New York Times . August 3, 2009.
  5. ↑ "The most powerful woman on Wall Street". Financial Post. Bloomberg News. 4 March 2011. Retrieved 23 September 2021.
  6. ↑ Elizabeth MacBride (2 February 2011). "Sallie Krawcheck, A Recruiter's Nightmare". Forbes .
  7. ↑ "The Woman Who Made It on Wall Street". New York Magazine . Nov 3, 2009.
  8. ↑ "The Legendary Sallie Krawcheck Has Some Advice For Young Bankers". finance.yahoo.com. 3 May 2013. Retrieved 23 September 2021.
  9. ↑ " Smith Barney CEO coming to The Citadel", The Citadel , Press release: February 4, 2004.
  10. ↑ "Notable BGS Members - Beta Gamma Sigma". www.betagammasigma.org. Retrieved 2017-12-08.
  11. ↑ "Citigroup to separate units" Archived 2006-07-20 at the Wayback Machine , St. Petersburg Times (Florida), October 31, 2002.
  12. ↑ David Rynecki (June 10, 2002). "In Search Of The Last Honest Analyst Our quest wasn't easy. But we did find a few standouts you can trust. Here, our third annual All-Stars". Fortune .
  13. 1 2 Iwata, Edward, "Citigroup's 'giant step forward'", USA Today, October 30, 2002.
  14. ↑ Kadlec, Daniel, "2002 Global Influentials - Sallie Krawcheck", Time.
  15. ↑ Julia La Roche (November 7, 2011). "Did Sallie Krawcheck Just Hint That She Will Not Be Returning To Work On Wall Street?". Business Insider . Archived from the original on January 18, 2013.
  16. ↑ English, Simon (2004-09-28). "Rising star calls Citigroup to account". The Daily Telegraph. ISSN   0307-1235 . Retrieved 2017-12-08.
  17. 1 2 3 Geraldine Fabricant (15 November 2011). "When Citi Lost Sallie". The New York Times. Retrieved 14 September 2011.
  18. ↑ Janet Levaux (November 8, 2011). "Krawcheck at SIFMA: Wall St. Must Shift Its 'Culture of Crisis'". AdvisorOne. Archived from the original on 2011-11-09. Retrieved 2019-08-24.
  19. 1 2 Jessica Toonkel, Ashley Lau (9 September 2011). "Krawcheck seen bidding final adieu to Wall Street". Reuters. Retrieved 14 September 2011.
  20. ↑ Patricia Sellers (22 September 2008). "Behind Sallie Krawcheck's exit from Citi". Fortune. Archived from the original on 2011-07-23. Retrieved 2019-08-24.
  21. ↑ "Sallie Krawcheck: Bring on the indies". Bloomberg. 4 March 2011. Retrieved 14 September 2011.
  22. ↑ Christina Rexrode (6 September 2011). "Struggling Bank of America shakes up exec ranks". Associated Press. Archived from the original on 5 November 2012. Retrieved 14 September 2011.
  23. ↑ Halah Touryalai (2 September 2011). "Bank Of America's Latest Peril: Losing Merrill Lynch?". Forbes. Retrieved 14 September 2011.
  24. ↑ Son, Hugh (October 8, 2011). "BofA Hands Sallie Krawcheck $6 Million Severance After Ouster". Bloomberg Businessweek . Archived from the original on October 11, 2011. Retrieved October 29, 2011.
  25. ↑ William Alden (May 15, 2013). "Krawcheck Agrees to Buy the Women's Network 85 Broads". The New York Times .
  26. ↑ Perez, Sarah (11 May 2016). "Former Citigroup CFO Sallie Krawcheck launches Ellevest, a digital investment platform for women | TechCrunch" . Retrieved 2017-08-08.
  27. ↑ "The 100 Most Powerful Women". Forbes.com. 2006-08-31. Retrieved 2008-01-28. (2006 List)
  28. ↑ "The Most Powerful Women". Forbes.com. Retrieved 2008-01-28. (2005 List)
  29. ↑ IA 25 Archived copy
  30. ↑ Sarah Brokaw (October 2, 2012). "Sallie Krawcheck on Being a Mom". Sarah Brokaw.com. Archived from the original on February 1, 2013.
  31. ↑ Allan Dodds Frank (October 16, 2012). "Former Wall Street Executive Sallie Krawcheck Critiques Financial Reform Policy". The Daily Beast .
  32. ↑ "A look at 42 women in tech who crushed it in 2017". TechCrunch . December 22, 2017. Retrieved January 11, 2018.
  33. ↑ Charles W. Waring III (June 27, 2012). "Sallie Krawcheck's Southern strategy". Charleston Mercury. Archived from the original on January 19, 2013.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.