Key facts
- Citigroup's wealth division attracted $192 billion in net inflows in the second quarter.
- Andy Sieg was hired to lead the overhaul of Citigroup's wealth division.
- Sieg received $11.3 million in compensation for his first quarter at Citigroup.
- The wealth division has struggled to compete with rivals like Morgan Stanley and JPMorgan Chase.
Citigroup's wealth management division has seen a significant turnaround, attracting $192 billion in net inflows during the second quarter. This success follows the hiring of Andy Sieg, formerly of Bank of America, to lead the division and implement an overhaul.
Sieg's compensation for his first quarter at Citigroup amounted to $11.3 million, underscoring the bank's commitment to revitalizing its struggling wealth business. The division has faced challenges competing with rivals such as Morgan Stanley and JPMorgan Chase.
Despite the recent inflows, the year's final months showed ongoing challenges, with net interest income in the wealth business falling 10% to just over $1 billion in the fourth quarter compared to the previous year. Sieg has already brought in former Bank of America colleague Don Plaus to manage Citigroup's private bank in North America.
Citigroup CEO Jane Fraser's compensation package was increased by 6% to $26 million, while CFO Mark Mason's pay was slightly reduced. Markets chief Andy Morton received $18.5 million, and Paco Ybarra, who stepped down as head of the institutional clients group, received $20 million.