Andy Sieg is out as the head of Merrill Wealth Management and will be returning to Citigroup, where he worked before being hired by Merrill Lynch in 2009.
Bank of America announced Thursday after the market closed that Sieg is leaving the company, where he had served as president of Merrill since 2017.
Citigroup CEO Jane Fraser said in a memo Thursday afternoon that Sieg was rejoining Citigroup to lead its global wealth unit.
"This is a fantastic opportunity to build a leading wealth management business at the world’s most global bank at a time of massive wealth creation worldwide," Sieg said in a statement. "There is a transformation underway at Citi, and I am excited about becoming part of a team that’s driven to deliver for clients, colleagues and shareholders.”
The move comes one week after Citi elevated Anand Selva, previously the head of Citi's private banking and wealth management, to the role of chief operating officer.
Selva and Fraser wanted a leader for the wealth business who had deep experience in the U.S. and would be well positioned to coordinate with Citi's other four core businesses, Fraser said in the memo.
As president of Merrill Lynch, Sieg ran a $18 billion business with $2.8 trillion in client deposits, she said. Under Sieg's leadership, Merrill Lynch introduced an overhauled pay plan for its financial advisors dubbed a "growth grid" in order to goose them into reeling in new clients.
Before joining Merrill, Sieg served as a senior wealth management executive at Citi from 2005 to 2009.
Sieg will report to Fraser and become a member of Citi's executive management team.
Sieg’s move back to Citi “sends a strong signal about the potential of our Wealth proposition and the attractiveness of our unique global offering,” Fraser said in the memo.
"Growing Wealth is a core pillar of our strategy and will improve our business mix by adding more fee-based revenue and drive improved returns," Fraser added. "Over the course of his professional life, Andy has built a reputation as a change agent, a strong and effective people leader and someone who delivers results. He’ll quickly put these skills to good use at Citi as we deliver against our Wealth objectives."
Sieg will start in September, after a six-month garden leave, Fraser said. Jim O'Donnell will remain as head of Citi's wealth until Sieg starts before transitioning into a new role as executive vice chairman of Citi and head of senior client engagement.
At Merrill Lynch, Sieg is being replaced by Lindsay Hans and Eric Schimpf, who have been appointed presidents and co-heads of Merrill Wealth Management. They will reporting to Bank of America chair and CEO Brian Moynihan.
In a press briefing earlier this year, Sieg said that in 2022, the firm had paid financial advisors $120 million in additional compensation via its “growth grid” pay plan, which rewards advisors who bring in healthy numbers of net new clients and households.
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