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Citigroup has increased CEO Jane Fraser’s compensation by 6% to USD 26 million for the year 2023, despite the bank experiencing a nearly 40% decline in profits during a comprehensive reorganization. The details were disclosed in a regulatory filing, revealing that Fraser’s remuneration includes a USD 1.5 million base salary and a USD 24.5 million bonus. The decision is attributed to Fraser’s strategic streamlining of Citigroup, described as “the most consequential set of changes to its organizational and management model since the 2008 financial crisis.”
Fraser, who assumed the role of CEO in early 2021, was tasked with revitalizing Citigroup after years of underperformance compared to its peers. Her outlined strategy involves significant job cuts, with at least 20,000 positions slated for elimination. Additionally, plans to withdraw from retail banking in 14 overseas markets have been announced.
The CEO is also actively working to release Citigroup from a 2020 consent order with banking regulators, necessitated by a USD 900 million mistaken wire transfer to creditors of a client, Revlon.
Comparable adjustments in CEO pay have been observed in other major banks, such as JPMorgan Chase, Morgan Stanley, and Goldman. While JPMorgan’s Jamie Dimon saw a 4% increase to USD 36 million, Morgan Stanley’s James Gorman experienced a 17.5% YoY rise to USD 37 million. Goldman elevated David Solomon’s pay by 24% to USD 31 million. In contrast, Bank of America reduced CEO Brian Moynihan’s pay by 3%, or USD 1 million, to USD 29 million.
Citigroup emphasized that the compensation committee, within its board of directors, considered competitive market pay levels for CEOs of peer institutions when determining Fraser’s remuneration.
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