Compensation of Jane Fraser, Citigroup’s CEO, Surges by 6% at $26 Million Amidst Company Overhaul
In the latest disclosure to the Securities and Exchange Commission (SEC), it has been revealed that Citigroup’s Chief Executive Officer, Jane Fraser, saw a remarkable 6% increase in her compensation package for the fiscal year 2023. The reported figure stands at a substantial $26 million, primarily composed of performance-based stocks and cash incentives. This notable uptick in remuneration comes at a pivotal juncture for the banking behemoth as it embarks on a significant restructuring initiative set to reshape its operational landscape.
According to the SEC filing, Citigroup’s board commended Fraser for spearheading what they deemed as the “most pivotal series of transformations to its organizational framework and managerial structure since the aftermath of the 2008 financial downturn.” These transformative endeavors encompass a strategic division of the bank into five distinct business entities, namely services, trading, personal banking, banking, and wealth management. However, the ambitious restructuring also entails a workforce reduction of approximately 20,000 positions.
Acknowledging Fraser’s pivotal role in navigating these seismic changes, the filing underscores that there remains a considerable amount of groundwork yet to be covered by the CEO. This sentiment is underscored by Citigroup’s dismal financial performance in the preceding year, marked by a staggering 38% decline in profits.
Fraser, who assumed the role of Citigroup’s CEO in 2021, has been at the forefront of orchestrating the bank’s sweeping corporate revamp, slated to culminate in the elimination of 20,000 positions by 2026. Notably, in 2023 alone, the company axed 10% of its upper management cadre.
Despite her commendable efforts, Fraser’s compensation still pales in comparison to her male counterparts within the banking sphere. For instance, while Fraser received $26 million, her counterparts, such as Goldman Sachs’ CEO David Solomon, JPMorgan Chase’s Jamie Dimon, and Morgan Stanley’s James Gorman, boasted significantly higher compensation packages of $31 million, $36 million, and $37 million respectively.
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