Citigroup (C, Financial) has announced a significant increase in CEO Jane Fraser's total compensation for 2024, raising it by 33% to $34.5 million, making it the highest increase among Wall Street CEOs. This decision reflects the board's confidence in Fraser's strategic initiatives aimed at enhancing the bank's returns and ensuring sustainable growth.
The majority of Fraser's pay comes in the form of stock awards, with deferred stock valued at approximately $11.6 million and performance-based stock units at $16.5 million. Under Fraser's leadership, Citigroup has met its revenue and expenditure targets set for investors and achieved record revenues in three of its five divisions. Her efforts to streamline operations have included global retail business divestments and workforce reductions of around 20,000 employees.
Despite historical underperformance compared to peers, Citigroup's stock performance has improved under Fraser's reforms, narrowing the gap with major banks like JPMorgan Chase and Wells Fargo. However, Citigroup faced challenges, including a significant regulatory fine in July, impacting its stock price. Additionally, the bank remains under regulatory scrutiny from the Federal Reserve and the Office of the Comptroller of the Currency regarding data and risk controls, posing obstacles to Fraser's plans.
In 2024, Citigroup's stock ranked second to last among the six largest U.S. banks, just above Bank of America. However, since 2025, Citigroup's stock has outperformed Wall Street, rising over 20% year-to-date, driven by a $20 billion stock buyback plan announced by Fraser and CFO Mark Mason. This outpaces JPMorgan Chase's 17% increase in the same period.
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