Citi to split up and customize wealth unit
Under the reorganization, the New York-based bank will split the wealth management unit into four segments.
Citigroup Inc. announced that it is reorganizing its U.S. wealth management unit to focus on serving clients based on their net worth, according to an internal memo cited in published reports.
Under the reorganization, the New York-based bank will split the unit — which includes its Smith Barney retail brokerage and private bank — into four segments, according to a memo from wealth management chief Sallie Krawcheck.
The new units will serve ultra-high-net-worth segment with $25 million in assets; high net worth clients with between $500,000 and $25 million in assets; “emerging affluent” clients with under $500,000 in assets; and institutional services.
“This reorganization will allow us to sharpen our focus around our client orientation in a manner that is meaningfully better than our competitors,” the division’s chief executive, Sallie Krawcheck, wrote in a memo to employees, which was cited by The Wall Street Journal.
Charlie Johnston, the current chief executive of Smith Barney, will become president for the United States and Canada.
John Longley will retain his position as head of the U.S. private bank and take over responsibility for ultra-high net worth clients.
Both individuals will continue to report to Ms. Krawcheck.
Additionally, the company named former Citigroup investor relations chief Art Tildesley as chief administrative officer in wealth management.
The moves come as Vikram Pandit, who took over as chief executive of the company in December, is trying to make the bank more efficient and responsive to customers.
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