Citigroup CEO's Compensation Surges 33% to $34.5M in 2024

Citigroup Inc. (C) has announced a significant 33% increase in the compensation package for its CEO, Jane Fraser, for the 2024 fiscal year. Fraser's direct compensation was set at $34.5 million, reflecting her strategic and operational priorities, as well as the bank's strong financial performance. The compensation package includes a base salary of $1.5 million, a $4.95 million cash incentive, deferred stock valued at $11.55 million, and performance share units (PSUs) worth $16.5 million.

Fraser's compensation increase aligns with Citigroup's improved financial performance in 2024, with a 37% rise in full-year net income to $12.7 billion and a 3% growth in revenues to $81.1 billion. The Compensation Committee also considered comparable pay for CEOs at similar financial institutions when determining Fraser's compensation package.

Fraser's leadership in several strategic initiatives contributed to her compensation increase and Citigroup's long-term success. These initiatives include:

1. Reorganization and workforce reduction: Fraser led a wide-scale reorganization that flattened the management model and enhanced leadership accountability. This effort aimed to reduce the workforce by 20,000 employees by 2026, with 7,000 cuts completed in the first seven months. This initiative helped improve operational efficiency and contributed to the bank's overall financial performance.
2. Tech modernization: Fraser accelerated investments in Citigroup's tech infrastructure and continued to execute on remediation of issues identified in 2020 consent orders from the Office of the Comptroller of the Currency and the Federal Reserve. While the bank faced new penalties of $135.6 million in 2024, Fraser's leadership in modernizing the bank's technology helped improve its overall safety and soundness.
3. International market exits: Fraser continued efforts to extricate the bank from 14 international retail markets, with a notable achievement in 2024 being the separation of institutional banking operations in Mexico from Banamex. This move sets up a long-sought initial public offering (IPO) for Banamex, which Citigroup has targeted for 2025. Fraser's leadership in this strategic initiative helps the bank focus on its core businesses and improve long-term profitability.
4. Talent acquisition: Fraser's success in luring external talent to the bank, such as Vis Raghavan from JPMorgan to oversee Citi's investment, corporate, and commercial banking businesses, and former PricewaterhouseCoopers senior partner Tim Ryan to lead the bank's technology and legacy franchise efforts, further contributed to her compensation increase. These strategic hires helped strengthen Citigroup's management team and position the bank for long-term success.

Fraser's compensation increase reflects Citigroup's commitment to rewarding its CEO for driving the bank's success and aligning her interests with those of the company and its shareholders. This trend is consistent with the broader industry trend of increasing executive compensation, particularly for CEOs, as banks seek to attract and retain top talent in a competitive market.

In conclusion, Jane Fraser's compensation increase reflects her leadership in strategic initiatives that contributed to Citigroup's improved financial performance and long-term success. The bank's compensation strategy aligns with industry trends and demonstrates its commitment to rewarding its CEO for driving the company's success.