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Citigroup CEO Jane Fraser receives pay raise to $26 million despite layoffs

Feb 22, 2024 1 min read

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Citigroup CEO Jane Fraser's compensation has been increased by approximately 6% for the year 2023, bringing her total pay package to $26 million. This raise comes amid a broader restructuring of the company, which includes plans to cut thousands of jobs over the coming years. Fraser's salary is composed of a $1.5 million base, a $3.7 million cash bonus, and $20.8 million in performance-linked stock that is deferred.

The bank's decision to raise Fraser's compensation is based on her leadership during a period of significant organizational change, which involved splitting the company into five business units and a reduction of 20,000 jobs, including a 10% cut in upper management positions in 2020. The changes led by Fraser are seen as the most substantial modifications to Citigroup's structure and management approach since the 2008 financial crisis.

Citigroup has justified the restructuring efforts and the associated executive compensation by pointing to potential cost savings of $2.5 billion and the goal of delivering increased returns to shareholders. Despite Fraser's pay increase, her compensation remains among the lower end when compared to her male counterparts at other major banks. For context, JPMorgan Chase CEO Jamie Dimon saw a 4.3% pay increase, while Morgan Stanley's former CEO James Gorman received a 17% raise, and Goldman Sachs CEO David Solomon's pay was increased by 24%. Meanwhile, Citigroup's shares have experienced an uptick of nearly 8% this year.

#finance #business-leaders #unemployment

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