Sallie Krawcheck – CEO

by Kristine Bigcas

Sallie Krawcheck is an American entrepreneur, CEO and Founder of Ellevest, and Chair of Ellevate Network. She has been the president of Global Wealth & Investment Management division of Bank of America as well. Her success is widely recognized in the industry. She shares her knowledge by advising any start-up business.

In the 2005 Forbes’ List of Most Powerful Women, Sallie she snatched the 7th position out of 25. She is also one of the Young Global Leaders of the World Economic Forum and a recipient of the Business Leader of the Future Award. On top of those, she is also considered as one of the most senior women on Wall Street.

Early Life

Sallie was born on November 28, 1964, in New Orleans and was raised in Charleston, the largest city in South Carolina. For her basic education, she attended the exclusive coed college preparatory school, Porter-Gaud School located in still in Charleston. During her last year in high school, she was awarded the South Carolina Presidential Scholar. Her extracurricular activities include track and field and was considered as one of the track stars. Ever an athlete, she was also a cheerleader. She was also crowned as the homecoming queen.

She then advanced to University of North Carolina Chapel Hill in 1983 with a Morehead Scholarship (now Morehead-Cain). Her scholarship “provides a full four-year scholarship covering tuition, books, room and board, a laptop computer, and four Summer Enrichment Programs.” She completed her degree in AB Journalism on 1987. She was a pledged member of Tri-Delta Sorority and was an active member of the university’s school paper, Daily Tar Heel. She also was a member of the UNC’s prestigious honor society, Order of the Golden Fleece.

Three years following her college studies, she started her Master’s program at the Columbia Business School. She took up Master of Business Administration and graduated in 1992. She was a member Beta Gamma Sigma, an academic honor society and the largest alumni group of business programs graduates.

Personal Life

In 1990, she married her first husband John Binnie. He and Sallie didn’t have children together. Their relationship did not work out and ended up in a divorce. One of the problems they have encountered is the extramarital affair of her husband. She was recalled in an interview that “I would come home from a meeting and I’d say sorry I’m late and he’d roll his eyes. As soon as you get the eye roll you have a problem. And in fact, he was having an affair.” After her failed relationship with John, Sallie shared “When you’re reeling from a break to a relationship, that’s a really bad time to try to figure out how to manage your money.”

Her second marriage is with another Wall Street Titan, Gary Appel. He is the vice-chairman of Castle Harlan, a private equity fund. She and Gary now live in an apartment in Park Avenue with their two children and go to their “Sunstone” vacation home in The Hamptons regularly. She once considered to stay at home during her pregnancy with her son but chose to go back to work.

She also had her own financial setback back in the days just like any other individual. In an interview, she admitted,  “Citi’s stock went from $53 to less than $1.” This crash in the market had cost her a huge sum with her net worth cut to a significant amount wiped away.

Family

Sallie is the daughter of the former House of Representatives member, Leonard Krawcheck. He is also a senior member of the Krawcheck & Davidson Law firm. He studied his bachelor’s degree in Duke University and College of Charleston before taking up his degree in law at Tulane University. In 1965, he passed the board exam and became a lower. His expertise is real estate law, mortgages, community association law, and zoning, planning, and land use.

Business Career

After college, Sallie’s first job was at Salomon Brothers in 1987. This was her first breakthrough in the Wall Street. She was there for three years before deciding on quitting and getting her master’s degree. When she finished MBS at Columbia Business School, she accepted a position at Donaldson, Lufkin & Jenrette.

From 1995 to 1999, she was the Senior Research Analyst at Sanford C. Bernstein & Co and was promoted to Director of Research in 1999 to 2001. She was dubbed by Fortune as “The Last Honest Analyst” during her time in Sanford. She then became the CEO of the company for a year before she transferred to Smith Barney in October 2002. She stayed there for two years and a half and moved to Citigroup to become their Chief Financial Officer.

After another two years, she joined Citi Wealth Management and took management responsibility for Smith Barney, Citi Private Bank, and Salomon Smith Barney equity research as well. A year after, she became the CEO of Merill Lynch Wealth Management and US Trust, taking management responsibility for Merrill Lynch Wealth Management, US Trust and Bank of America Merrill Lynch Retirement Services.

She is currently a member of the Board of Directors of 2U since April 2014, Chair of Pax Ellevate Management since June 2014, Chair of Ellevate Network since May 2013, and the CEO and Co-Founder of Ellevest since September 2015. Due to her work and her overall success, she is named the 7th Most Powerful Woman in the World in the 2005 list. Her other work includes establishing a scholarship in Porter-Gaud, granting a full-tuition to qualified students.

Some of her Asset

When she left the Bank of America, Sallie received a check that amounts $6 million for her severance pay from the company. $850,000 of that was her salary for a year and the rest was a one-time lump sum.