Citigroup Inc. lifted Chief Executive Jane Fraser’s pay about 6 percent to $26 million for a year in which she kicked off a major overhaul of the Wall Street giant to simplify operations and boost profitability.
The New York-based bank awarded Fraser a total of $1.5 million in salary and $24.5 million in stock-based and cash incentive awards for 2023, it said in a filing Tuesday. Fraser, who’s been in her post since March 2021, was the only major bank CEO to get a raise for 2022, a move largely attributed to its being her first full year running the company.
The increase in pay for 2023 comes after Fraser initiated what’s billed as the largest reworking of Citigroup in decades, designed to propel the firm from a banking underdog to one competitive with its more profitable peers. Last month, the bank said it would cut 20,000 roles in its bid to boost returns.
The compensation committee of Citigroup’s board believes Fraser’s “strategic and other priorities are sound and that she is executing on them promptly and thoughtfully, with an eye towards driving long-term sustainable growth, improved returns and enhanced safety and soundness,” according to the filing.
Citigroup’s shares rose nearly 14 percent last year after three consecutive years of declines. Net income, however, dropped by 38 percent as revenue slowdowns across the bank’s markets, wealth and banking divisions were compounded by rising expenses due to investments across most of the business.
The pay package for Fraser, the only female head of a US banking giant, remains the lowest of her cohort.
Goldman Sachs Group Inc lifted pay for CEO David Solomon by 24 percent to $31 million, even as profit dropped by the same percentage. Morgan Stanley’s James Gorman got a 17 percent bump to $37 million for his final year as CEO, while JPMorgan Chase & Co. raised Jamie Dimon’s pay 4.3 percent to $36 million.
Wells Fargo & Co. CEO Charlie Scharf got an 18 percent hike to $29 million, while Brian Moynihan was the only chief to get a cut. His pay fell 3 percent to $29 million.
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