Citigroup Investigates Wealth Management Head Over Employee Allegations

Citigroup has engaged the law firm Paul Weiss to investigate allegations against the head of its wealth management division. The allegations, which have surfaced over the past two years, accuse the executive of intimidating and unfairly marginalizing employees during the restructuring of the wealth management business. The executive is a key figure in Citigroup's turnaround strategy, which includes significant changes to its wealth management division.

The allegations have raised concerns about the company's internal culture and its commitment to fair treatment of employees. The investigation was initiated at the request of Citigroup's head of human resources. The board of directors, led by chairman John Dugan, has also received anonymous complaints about the executive's behavior during their tenure at Citigroup and earlier in their career. The investigation, which has already been completed, involved questioning more than ten individuals, with the most recent interviews taking place in July. Citigroup declined to comment on the investigation's findings, and the executive did not respond to requests for comment.

Several senior vice presidents at Citigroup have lodged complaints, with both current and former employees expressing their concerns to the human resources department. Some of the complaints pertain to the executive's treatment of former private banking head Ida Liu, who left the company in January after 18 years of service, and wealth management executive Kristen Bitterly. Several individuals who filed complaints are no longer employed by Citigroup. The allegations include instances of the executive using profanity-laden outbursts, publicly belittling a departing executive, and criticizing an employee's performance in front of their colleagues.

Citigroup's spokesperson stated that engaging an external law firm to investigate allegations against senior management is standard procedure to ensure the investigation's independence and avoid potential conflicts of interest. The executive's behavior is said to have included profanity-laden outbursts, publicly belittling a departing executive, and criticizing an employee's performance in front of their colleagues. The law firm Paul Weiss did not respond to requests for comment, and Liu declined to comment. Bitterly, who is still employed by Citigroup, did not respond to requests for comment.

Expanding Citigroup's wealth management business has been a top priority for CEO Jane Fraser, who took the helm in 2021 with a promise to enhance the company's profitability and keep pace with global peers. The executive joined Citigroup in September 2023, having previously served as the head of Merrill Lynch's wealth management division at Bank of America for six years. Fraser reportedly made multiple attempts to recruit the executive, even visiting their home in Connecticut to persuade them to join Citigroup.