Citi’s Jane Fraser, the first female CEO of a major US bank, gets $22.5 million for 2021
(Bloomberg) – Citigroup Inc. awarded chief executive Jane Fraser $22.5 million for her work in 2021 after assuming the top job in February and helping guide the bank through regulatory hurdles.
Fraser, 54, received shares totaling about $14.82 million, a cash bonus of $6.35 million and a salary of $1.33 million, the company said on Monday. New York-based bank in a file.
“She quickly worked to establish a clear set of priorities for Citi that are aimed at increasing shareholder value over time,” Citigroup’s board of directors said in the filing. “These priorities are centered on Citi’s transformation, strategic renewal, culture and talent. Executing this strategy should generate excess capital, which Citi can then return to shareholders.
Fraser, the first female chief executive to head a major U.S. bank, previously served as the company’s chairman. His predecessor, Michael Corbat, received $19 million for 2020, a year in which regulators sanctioned the bank for its internal controls.
In his first year as CEO, Fraser quickly revamped Citigroup’s strategy to simplify banking. She announced plans to exit retail banking operations in 14 markets around the world and instead double down on the company’s booming wealth management operations.
Throughout, she helped lead the bank in its efforts to resolve a pair of consent orders it grappled with in 2020 from the Federal Reserve and the Office of the Comptroller of the Currency. Citigroup submitted its proposal to address regulators’ concerns about many of its underlying technologies and risk management systems late last year, and is now implementing those initial plans.
Profits soared last year as the company released much of the reserves it had set aside at the start of the pandemic. Even so, company-wide revenue fell 5% and operating expenses jumped 9% as the bank continued to struggle with the consent order.
Investors continue to punish the title. It was the only lender in the 24-company KBW Banking Index whose shares fell in 2021, making it the worst benchmark index last year. Citigroup is the only major bank whose shares trade below book value, meaning shareholders believe the company destroys value rather than creating it.
Fraser’s award compares to the $34.5 million received by Jamie Dimon, CEO of JPMorgan Chase & Co., and the $35 million awarded to David Solomon of Goldman Sachs Group Inc. and James Gorman of Morgan Stanley.
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