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Citigroup CEO Jane Fraser received a 6% performance-based pay raise in 2023, but the bank’s profits fell 38% that year and Fraser cut an estimated 20,000 jobs. The company embarked on a dramatic restructuring.
Citigroup (C) said in a regulatory filing Tuesday that its board awarded her total compensation of $26 million. This amount includes a base salary of $1.5 million and $24.5 million in cash, as well as deferred stock and performance-based compensation units that vest over the next several years.
The award, which was increased from $24.5 million in 2022, said: “Mr Fraser’s strategic and other priorities are sound and she has swiftly and thoughtfully implemented them with the aim of fostering long-term sustainable growth.” “Return and strengthen safety and soundness,” the application states.
Fraser’s $26 million was the lowest of the $29 million to $37 million received by rival CEOs at JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs and Morgan Stanley. . Bank of America’s Brian Moynihan was the only CEO in this group to experience a pay cut.
Mr. Fraser was appointed CEO in September 2020 and assumed the position in February 2021. Since then, his stock has risen more than 5%. So far this year, the stock has outperformed its peers, gaining nearly 8%.
In 2023, Fraser said she has many things to overcome, including the biggest decline in profits among her big rivals and what she calls the “most significant” changes to the way the New York lender has operated in nearly 20 years. There were many.
Instead of operating in two huge divisions, she has divided the bank into five separate divisions, with leaders reporting directly to her. She clarified that this meant fewer people.
“We are saying goodbye to some very talented and hard-working colleagues,” Fraser wrote when announcing his move in September.
The first round of layoffs began in November, affecting senior management. The bank told analysts in January that it planned to cut 20,000 positions by 2026.
Fraser is trying to make the company more efficient by focusing on serving large multinational corporations and cutting out unprofitables.
Citi also plans to exit consumer banking globally, selling nine of its businesses and exiting 14 businesses in Asia, Europe, the Middle East, Africa and Mexico.
The company has also exited the U.S. municipal bond business, and in the 1990s Citigroup and its CEO Sandy Weill established the bank as a “financial supermarket” that could provide all the services consumers needed. ” and is dismantling yet another part of the empire it built. Both companies and governments.
Citigroup reported a net loss of $1.8 billion in the fourth quarter as a result of a $1.7 billion FDIC valuation and other charges and provisions.
Mr Fraser called the results “very disappointing” but said: “We have made significant progress towards simplifying Citi and delivering on our 2023 strategy.”
This year will be a “tipping point,” she added.
David Hollerith is a senior reporter at Yahoo Finance, covering banking, cryptocurrencies, and other financial areas.
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