Citi has announced a 33% increase in CEO Jane Fraser’s total compensation for 2024, bringing her earnings to $34.5 million. This raise reflects the company’s financial growth and Fraser’s efforts to streamline operations.
Breakdown of Compensation
Fraser’s new compensation package includes:
- $1.5 million in base salary
- $4.95 million in cash incentives
- The remaining amount in deferred incentives
In 2023, Fraser earned $26 million, making this a significant pay increase. Citigroup’s decision aligns her salary with CEOs at comparable financial institutions.
Factors Behind the Pay Raise
The bank justified Fraser’s increased compensation by citing key performance metrics:
- 3% growth in full-year revenue
- 37% increase in net income
- Structural improvements, including a streamlined management system
Citigroup’s board also acknowledged her progress in addressing regulatory challenges. The bank recently resolved a 2013 consent order related to money laundering but admitted that further work remains.
Ongoing Regulatory Challenges at Citi
Despite operational improvements, Citi has faced regulatory penalties in recent years. In 2020, the Office of the Comptroller of the Currency and the Federal Reserve fined the bank $400 million for risk and data management failures. More recently, in July 2024, Citi was fined $136 million for inadequate progress in resolving these issues.
Citi: Looking Ahead
Fraser’s leadership continues to shape Citi’s strategic direction, particularly in compliance and operational efficiency. As the bank navigates regulatory hurdles, its compensation decision signals confidence in her ability to drive further growth.
