Citigroup is bolstering its recruitment strategy, offering enhanced deals to attract seasoned financial advisors as part of a plan to revitalize its wealth management sector, which has lagged behind key competitors. This push aligns with Citi CEO Jane Fraser’s broader initiative to reshape the bank’s operations.
Aimed at advisors catering to high-net-worth clients, Citi’s Citigold unit, which serves clients with assets of $200,000 or more and offers a higher tier for those above $1 million, has launched a competitive new hiring bonus to draw experienced advisors from affluent markets like New York and Los Angeles.
With a goal to increase its senior advisor headcount by 40%—adding around 150 advisors by the end of 2026—Citi is turning to external recruiters to meet this target. Currently, Citigold has about 400 branch-based advisors, but David Poole, head of Citigold and Citigold Private Client for North America, sees an opportunity to recruit those handling established, high-revenue books. “Where I think we’ve had a gap is bringing in that million-plus producer—someone who’s recognized in their market and has a solid client base,” Poole told Barron’s.
Citi’s efforts to expand its advisor team come at a challenging juncture. The bank is working to resolve compliance and regulatory issues that date back several years. In 2020, Citi faced two consent orders related to risk management and data handling deficiencies, and regulators have continued to scrutinize its progress. Following a recent inquiry by Senator Elizabeth Warren, questions about potential growth restrictions surfaced, prompting Fraser to clarify during Citi’s third-quarter earnings call that no additional constraints are anticipated beyond those announced in July.
As part of her three-year tenure, Fraser has taken steps to advance the turnaround, including bringing in Andy Sieg, a former Bank of America Merrill Lynch executive, to lead Citi’s global wealth business. Despite being one of the largest banks in the U.S., Citi has traditionally struggled to attract high-net-worth clients on par with firms like Morgan Stanley, Merrill, and UBS.
Poole’s strategic approach focuses on addressing this gap. Citi’s wealth division comprises three segments: Citigold, the private bank, and a unit catering to high-earning clients and their employers. By offering attractive recruitment packages, Citi is betting on its turnaround story and the potential for new business opportunities to attract advisors.
The latest recruitment package combines a loan and a bonus structure, potentially reaching up to 250% of an advisor’s annual revenue depending on experience, book size, and client quality. Poole highlighted that the primary targets are senior advisors with books generating between $1 million and $2 million in revenue. Advisors with production between $500,000 and $1 million have a similar offer, including a 50% upfront payment and a two-year bonus tied to asset growth.
Competition for high-performing advisors with strong assets under management is fierce, especially from wirehouses offering deals equivalent to 300% of annual revenue through a blend of upfront and deferred bonuses. In contrast, regional and independent firms generally provide less lucrative packages. Citi is directing its recruitment efforts toward advisors from major brokerage firms, banks, and independent wealth management companies.
To support its expansion, Citi is investing in its wealth management business and has committed to creating a substantial support team for new hires. “We’re not just offering recruiting loans,” Poole explained. “We’re focused on making the transition as seamless as possible by ensuring advisors have access to the resources they need.”
While compensation plays a major role in an advisor’s decision to move, other factors such as company culture, leadership, product offerings, and growth opportunities are also pivotal. Citi is leveraging its cross-departmental client referrals, a strategy successfully employed by JPMorgan Chase and Bank of America, to provide advisors with a steady flow of potential clients.
Whether Citi’s recruitment push will yield long-term success at scale remains uncertain. The bank is committed to evolving its approach and appealing to top talent to drive growth and transformation in its wealth management sector.
