Citigroup CEO Jane Fraser received a significant pay raise in 2023, despite the company’s 40% decline in profits the previous year. Fraser’s salary saw a 6% increase, bringing her total compensation to $26 million. According to a recent filing with the U.S. Securities and Exchange Commission, Citigroup attributed this raise to Fraser’s strategic leadership and prioritization efforts. The company emphasized Fraser’s sound strategy and effective execution of priorities as key factors influencing the compensation decision. This decision reflects Citigroup’s confidence in Fraser’s ability to drive long-term growth and enhance the company’s financial performance.
The Compensation Committee’s decision regarding Ms. Fraser’s incentive compensation for 2023 was based on its confidence in her strategic priorities and their prompt and thoughtful execution. They believe she is driving long-term sustainable growth, improved returns, and enhanced safety and soundness within Citigroup.
Despite her $26 million salary, it’s noteworthy that some Wall Street CEOs at large banks earn nearly $10 million more annually. This context provides a perspective on Fraser’s compensation relative to her peers in the industry.
In Citigroup’s fourth-quarter earnings report for 2023, diluted earnings per share for the entire year decreased by 42% compared to 2022, while net income shrunk by 38%. However, revenues for the year increased by 4%.
During the fourth quarter alone, Citigroup earned $17.4 billion in revenue but faced a significant loss of $18.7 billion, primarily due to charges such as $780 million related to severance and other reorganization efforts associated with the company laying off roughly 7,000 employees. Fraser described the earnings for the quarter as “very disappointing.”
Fraser took over Citigroup as CEO in 2021 after serving as president at the company for over a year. In September last year, she announced “significant changes” to the company’s organizational model “that will fully align its management structure with its business strategy and simplify the bank,” according to a press release.
In a press release, Fraser affirmed her determination to ensure Citigroup reaches its full potential, emphasizing the bank’s commitment to all stakeholders. As part of the new strategy, one significant change on the horizon involves reducing the workforce by 20,000 employees, aimed at generating $2.5 billion in expense savings by 2026.
Additionally, the company has allocated $700 million to $1 billion for severance and associated costs related to these impending layoffs. These bold decisions reflect Citigroup’s proactive approach to streamline operations and drive efficiency in pursuit of its strategic objectives.