Andy Sheeg, the head of wealth management at Citigroup, has responded to claims suggesting he created a hostile work environment through profane outbursts.
During an interview with FOX Business Network’s Maria Bartiromo, Sheeg, 58, stated, “the story itself is not accurate,” emphasizing that the significant changes within Citi are part of a strategic restructuring effort.
“That change is always difficult to navigate, but we’ve made substantial progress in our asset business,” he explained during the discussion with Bartiromo.
Just days ago, it was reported that Citigroup enlisted the law firm Paul Weiss to investigate complaints against Sheeg, with at least six managers accusing him of publicly humiliating subordinates in front of colleagues.
Sources revealed that Sheeg allegedly erupted in a meeting, criticizing the team’s work as “pathetic” and even banging on the table in anger.
Central to the allegations is the treatment of Ida Liu, 49, who led Citi’s private banking division for two decades before leaving abruptly in January. Liu’s departure was particularly significant since she had held influential roles similar to those of Jane Fraser, Citi’s CEO.
Witnesses informed investigators that Sheeg had made disparaging remarks about Liu publicly and belittled her authority.
Following Liu’s exit, it appears Sheeg disregarded her contributions, appointing four male executives to take over leadership roles in a co-head capacity.
Additionally, Chief Operating Officer Valentin Valderrabano reportedly instructed a managing director to limit Liu’s access to vital business information.
Another senior executive, Kristen, has also submitted multiple complaints regarding Sheeg’s behavior, which some reports claim included ridicule in front of peers. This comes after her predecessor, Naz Vahid, departed the firm after nearly four decades, citing concerns about Sheeg’s conduct.
As allegations continued to accumulate, Citigroup’s HR Chief Sarawector began a review with Paul Weiss, contacting over 12 witnesses, and the inquiry is said to have extended into July.
Chairman John Dugan received an anonymous letter outlining troubling behaviors attributed to Sheeg, who has a long history in wealth management roles.
So far, the external review has not yielded any public findings, and Citigroup has withheld information on whether Sheeg faces disciplinary action. He has not responded to multiple inquiry attempts from Bloomberg.
In defense of Sheeg, Citigroup spokesperson Mark Costiglio described him as “a highly respected leader” with over 25 years in the wealth management sector.
Costiglio lauded Sheeg’s leadership since he joined the bank in 2023, indicating that significant transformation had occurred under his guidance and noting that more than 40% of the wealth unit’s senior leadership team are women.
Jane Fraser, who personally recruited Sheeg, has not commented on whether any actions will be taken concerning his employment.
Fraser entrusted Sheeg with the task of revamping Citigroup’s wealth management operations, a challenge he is seen as handling effectively. His division recorded impressive revenue of $2.17 billion in the second quarter, contributing to a nearly 40% rise in Citi’s stock this year.
