Andy Sieg faces internal HR investigation into conduct at Citigroup: Report

Almost two years after leaving Merrill Lynch as the head of wealth management for a similar position at Citigroup, veteran industry executive Andy Sieg is facing questions about his conduct, according to a report from Bloomberg News. Citigroup currently is investigating HR complaints about Sieg’s conduct in his role as head of wealth management.

Sieg, 58, was head of Merrill Wealth Management, left in 2023 and returned that September to Citigroup, where he worked before being hired by Merrill Lynch in 2009.

At the time of his hiring, Citigroup CEO Jane Fraser praised Sieg and was leaning on the veteran industry executive to light some fire under the wealth management business at the bank, which has lagged behind its competitors, particularly JPMorgan Chase & Co. Sieg runs the global wealth management division and sits on the bank’s 18-person 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 a memo at the time.

Now, Citigroup has hired law firm Paul Weiss for its inquiry into Sieg’s behavior, according to the Bloomberg report.

“Sieg, on a quest to shake up Citigroup’s wealth business, has drawn complaints from current and former staff accusing him of intimidating and unfairly sidelining employees since he arrived almost two years ago,” Bloomberg reported, citing people with direct knowledge of the matter.

Some on Wall Street had tagged him as a potential successor to succeed Fraser, but an investigation into his conduct leaves that open to question.

Paul Weiss’ inquiry into Sieg was opened “after a request from human resources chief Sara Wechter,” according to Bloomberg. “The bank’s board, led by chair John Dugan, has also received anonymous complaints critical of Sieg’s conduct at Citigroup and during earlier periods of his career,” according to Bloomberg, which cited its review of correspondence about the matter.

The Paul Weiss investigation is complete, according to the report, with more than a dozen people being interviewed.

Sieg did not respond to comment, according to the Bloomberg article.

A Citigroup spokesperson declined to confirm the details of the Bloomberg article.

The company said in a statement: “Andy is a hard-charging leader who has established a strong, client-focused franchise that is delivering revenue growth and improved returns. He also continues to attract, retain and promote industry-leading talent, including the more than 40% of accomplished women on Wealth’s Senior Leadership Team. We look forward to Andy continuing to drive strong business performance.”

The investigation is a clear letdown for Citigroup’s wealth management efforts. The banks sold its Smith Barney franchise to Morgan Stanley in the aftermath of the global credit crisis, leaving it without a well-known, established franchise for mass affluent investors.

And it also must be a letdown for Fraser.

"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 said at the time of Sieg’s hiring in 2023. “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."