This is the last time Sallie Krawcheck will be pushed out of a large Wall Street bank. Krawcheck, arguably the most powerful woman on Wall Street in her role as head of Bank of America Merrill Lynch global wealth, was forced out of her position last week. Three years before that she was let go from her executive position at Citigroup. According to industry executives and people who know her personally, Krawcheck is expected to leave the sellside of the industry and join a private equity or money management firm. “Her marquee name and presence would be a help to a fund company” that uses big brokerage firms to distribute its investment products, said Mark Elzweig, a New York-based recruiter of retail brokers.
According to recruiters, at a smaller pure asset management firm, Krawcheck “might be able to shake off Wall Street’s insatiable demand to meet very short-term goals and the cultural management wars endemic to big financial companies.” This is not to say that Krawcheck is giving up by leaving Wall Street, which does need more women in leadership positions, but is taking her talent to a place where it may be more appreciated. Krawcheck has been forced out of two companies, not because of shoddy work, but because she was on the wrong end of company reorganizations. She was demoted at BofA Merrill and instead of reporting to Bank of America’s chief executive, she would have reported to David Darnell, head of Bank of America’s commercial banking operations. Experts believe that Bank of America CEO Brian Moynihan knew this set up would result in Krawcheck leaving the company.
Some observers say another likely possibility is for Krawcheck to become a deal-maker at a private equity firm, where her charm and savvy would serve equally well. ”She’s smart, attractive, and would play well with the investor community,” said Gary Goldstein, a Wall Street recruiter who named the Carlyle Group, Kohlberg Kravis Roberts & Co and Bain & Co as potentials for Krawcheck.
While Krawcheck spends some time making her decision, she has a very nice severance package to rely on. Based on her past history and that of other fired executives, Krawcheck could take home as much as $5 million to $10 million after negotiations.