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Sallie Krawcheck

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Sallie L. Krawcheck
Sallie Krawcheck in May of 2012
Alma materUniversity of North Carolina at Chapel Hill
Columbia University (M.B.A.)

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.[1] She has turned around a number of troubled businesses in her career through eliminating conflicts of interests, namely Sanford C. Bernstein & Co., Smith Barney and Merrill Lynch & Co., Inc., and has been known as one of the most senior women on Wall Street.[2][3] Most recently she has been widely published in both social and more traditional media, focusing on Wall Street regulatory reform; she is also advising a number of start-ups.[4][5][6] On May 15, 2013, she agreed to buy the global women's network 85 Broads from its founder, Janet Hanson.[7]

Early life

Krawcheck grew up in Charleston, South Carolina. She attended the exclusive Porter-Gaud School.[8][9] 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 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."[10]

Career

Ellevate

Krawcheck acquired Ellevate, formerly 85 Broads, in 2013 and now manages the organization as Chair. She has often noted that “Investing in women is simply smart business” and is expressing this view through her ownership in the Ellevate companies. The Ellevate network is 34,000-strong global professional woman’s network with 40 regional chapters and campus clubs in the U.S. and abroad, representing over 130 countries including India, U.K, China and South Africa.

In June 2014, Ellevate partnered with Pax World Funds and created the Pax Ellevate Global Women's Index Fund (PXWEX), a mutual fund focused on investing in brands that have strong female leadership[11]. [12]

Sanford C. Bernstein

Krawcheck started her business career as the Institutional Investor magazine's top-ranked 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..[13] 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.”[14] 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.[15]

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.[10][16] 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.[15]

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

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. The move followed 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 also increased the number of financial advisors at Merrill, reversing an "exodus" of advisors from the firm.[24] As of June 2011, Merrill employed more than 16,000 advisors, during a time when most rivals had seen their ranks shrink.[25]

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.[19] She received severance payments totaling $6,000,000.[26]

Media career

Krawcheck has had numerous appearances on CNBC and written columns for Reuters and The Huffington Post, among others.[5][27][28] She has over 10,000 followers on Twitter and over 47,000 followers on LinkedIn and is one their most followed "Thought Leaders."[4][29]

Accolades

Forbes named her as number seven in its list of The World's 100 Most Powerful Women of 2005.[30] 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.[31] She was recognized by the World Economic Forum as one of its Young Global Leaders.[32] She is a past recipient of CNBC’s “Business Leader of the Future” Award.[33] She has been credited by The Daily Beast as remaining one of the “rare honest voices on Wall Street.”[34]

Additionally, Krawcheck has established a needs-based scholarship at her former secondary school, Porter-Gaud, awarding full tuition to students of exceptional aptitude.[35]

References

  1. ^ "Bank of America Hires Former Top Citigroup Executive". The New York Times. August 3, 2009.
  2. ^ Elizabeth MacBride (2 February 2011). "Sallie Krawcheck, A Recruiter's Nightmare". Forbes.
  3. ^ "The Woman Who Made It on Wall Street". New York Magazine. Nov 3, 2009. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  4. ^ a b WILLIAM ALDEN (April 19, 2012). "On Twitter, Krawcheck Finds a Voice". The New York Times. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  5. ^ a b Sallie Krawcheck (2012-06-13). "How to Make Banks Less Risky". The Huffington Post. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  6. ^ Halah Touryalai (2012-04-18). "Look Who's Back: Sallie Krawcheck Gets The Gold Bug". Forbes.
  7. ^ WILLIAM ALDEN (May 15, 2013). "Krawcheck Agrees to Buy the Women's Network 85 Broads". The New York Times. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  8. ^ Sallie Krawcheck at Citigroup
  9. ^ " Smith Barney CEO coming to The Citadel", The Citadel, Press release: February 4, 2004.
  10. ^ a b Kadlec, Daniel, "2002 Global Influentials - Sallie Krawcheck", Time.
  11. ^ Forbes, Moira. "Sallie Krawcheck: Why Investing in Women is Capialism at Work".
  12. ^ Murray, Sara. "Sallie Krawcheck Looks to Ellevate With New Venture".
  13. ^ "Citigroup to separate units", St. Petersburg Times (Florida), October 31, 2002.
  14. ^ 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. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  15. ^ a b Iwata, Edward, "Citigroup's 'giant step forward'", USA Today, October 30, 2002.
  16. ^ Julia La Roche (November 7, 2011). "Did Sallie Krawcheck Just Hint That She Will Not Be Returning To Work On Wall Street?". Business Insider.
  17. ^ a b c 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.
  19. ^ a b 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. Retrieved 14 September 2011.
  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. 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. ^ Halah Touryalai (20 January 2010). "Wealth Management Has Strong Fourth Quarter at Morgan, BofA". Registered Rep. Retrieved 14 September 2011.
  25. ^ Joseph A. Giannone (8 September 2011). "Analysis: Krawcheck ouster fuels Merrill brokers' bank angst". Huffington Post. Reuters. Retrieved 14 September 2011.
  26. ^ Son, Hugh (October 8, 2011). "BofA Hands Sallie Krawcheck $6 Million Severance After Ouster". Bloomberg Businessweek. Retrieved October 29, 2011.
  27. ^ John Carney (February 21, 2012). "Sallie Krawcheck: The Euro Is "Fundamentally Flawed"". CNBC.
  28. ^ Sallie Krawcheck (August 23, 2012). "Column: The SEC fumbles a crucial post-crisis battle". Reuters.
  29. ^ Todd Wasserman (October 2, 2012). "LinkedIn adds follow feature for 'influencers'". CNN.
  30. ^ "The 100 Most Powerful Women -- #7: Sallie Krawcheck, Chief financial officer, Citigroup, U.S.", Forbes.
  31. ^ IA 25
  32. ^ Sarah Brokaw (October 2, 2012). "Sallie Krawcheck on Being a Mom". Sarah Brokaw.com.
  33. ^ "CNBC Executive Leadership Awards". CNBC. January 31, 2007.
  34. ^ Allan Dodds Frank (October 16, 2012). "Former Wall Street Executive Sallie Krawcheck Critiques Financial Reform Policy". The Daily Beast.
  35. ^ Charles W. Waring III (June 27, 2012). "Sallie Krawcheck's Southern strategy". Charleston Mercury.
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