Thomson's ouster puts Krawcheck in charge of Global Wealth Management unit. Following the hasty departure of Todd Thomson, Citigroup says that Sallie Krawcheck will be the next chairman and CEO of its Global Wealth Management unit. But until they find someone to fill her shoes as strategy head for the bank's private-client business, Citigroup's COO Robert Druskin will run the brokerage and private-banking division.

Priorities

"Sallie has done a terrific job as our chief financial officer over the past two years, putting a capital allocation process in place, enhancing balance sheet management, and helping me redirect the company's strategy," Citi's chairman and CEO Charles Prince says in a press release. "She distinguished herself as an operating manager at Smith Barney, leading that business forward at a critical time in our company's history by accelerating its transition to a full-wealth management model and re-establishing excellence in our research operation, while maintaining industry-leading margins."

Krawcheck joined Citigroup in 2002 as chairman and CEO of Citi's retail brokerage Smith Barney -- a slot she lost to Thomson. She has since won plaudits for helping to restructure Citi's investment-research division.

Thomson -- who became chairman and CEO of Smith Barney in September 2004 and later head of its newly amalgamated brokerage, private-banking and research businesses -- got the boot this month for a series of infractions that, news reports say, included inappropriate use of a company aircraft. (More specifically, he's said to have bounced several Citi executives from a private-jet flight back from Asia last fall in order to give CNBC anchor Maria Bartiromo a lift. In addition, the Wall Street Journal reports, Thomson put $5 million of Citi's marketing budget into a Sundance Channel program to be co-hosted by Bartiromo.)

Krawcheck says she's "looking forward to returning to an operating role at Citigroup. Great opportunities exist for our Global Wealth Management business, particularly as economic growth drives a continued expansion of wealth around the globe."

Prior to joining Citi, Krawcheck -- who broke into the financial-service business as an equity analyst -- was CEO of Sanford C. Bernstein. She has also worked at Donaldson, Lufkin & Jenrette and at Salomon Brothers. Krawcheck's oversight experience includes research, financial reporting, treasury, tax, investor relations, mergers and acquisitions and business planning.

The rumor mill has her in line, eventually, for the top job at Citi. -FWR

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