Citigroup's wealth management division faces uncertainty as Don Plaus, a key executive, departs after just four months.
Plaus, who took on the role of head of North America for Citi's private bank on April 1, has announced his decision to leave, according to sources familiar with the situation. His departure comes amid efforts to rejuvenate Citi's $540 billion wealth business under new leadership.
Plaus was a significant hire for Citi, having spent over 30 years at Bank of America’s Merrill Lynch Wealth Management. At Merrill, he managed the firm’s largest client relationships as head of the private wealth management, international, and institutional groups. His experience and leadership were expected to play a crucial role in enhancing Citi's offerings to affluent clients.
Plaus joined Citi alongside his former boss, Andy Sieg, who was appointed head of Citi’s wealth management business last year. Sieg, who previously served as president of Merrill Lynch, has been restructuring Citi's management team to revitalize the wealth division.
When Plaus joined Citi, Sieg praised him on LinkedIn as an "extraordinary leader and consummate professional." In an internal memo, Ida Liu, global head of Citi’s private bank, highlighted Plaus' extensive leadership experience in the high-net-worth and ultra-high-net-worth sectors in North America. Plaus succeeded Halé Behzadi, who retired after two decades with the bank.
Plaus' sudden exit raises questions about the progress of Citi’s wealth management turnaround strategy. CEO Jane Fraser and her executive team, including Sieg, are pursuing a multiyear plan to increase efficiency and recover from past missteps that have affected shareholder performance.
The wealth management division, comprising the private bank, Citigold, and Global Wealth at Work, is central to Citi’s growth strategy. During the bank's second-quarter earnings call, Fraser reported improvements in wealth management, with growing client investment assets and declining expenses. Sieg, in a June presentation to investors, outlined plans to strengthen the division by appointing new leaders and increasing financial advisors’ productivity.
Sieg has been actively recruiting from Merrill and other competitors, including Morgan Stanley’s wealth management arm, since joining Citi. Plaus’ departure may test the resilience of these efforts as Citi continues to navigate challenges in its wealth management division.
