Citigroup CEO Compensation 2023

Citigroup’s Chief Executive, Jane Fraser, received a significant 6% increase in her total compensation for the year 2023, totaling $26 million. The bank, highlighting her “sound” strategic priorities, made the announcement on Tuesday.

Compensation Breakdown

• Base Salary: $1.5 million
• Cash Incentive: $3.675 million
• Deferred Incentives: Approximately $20.8 million in deferred stock and performance share units

Strategic Achievements

Under Jane Fraser’s leadership, Citigroup made notable progress in key areas like:

• Simplifying operations by scaling back in markets outside the U.S.
• Strengthening the wealth business
• Improving shareholder returns

Regulatory Compliance

Addressing regulatory concerns head-on, Fraser’s initiatives included:

• Implementing measures to enhance risk-management controls as directed by the Federal Reserve in 2020
• Taking corrective steps following a fine imposed by the Office of the Comptroller of the Currency

Organizational Revamp

The filing highlighted that under Fraser’s guidance, Citigroup underwent significant organizational and management restructuring, described as “the most consequential set of changes since the 2008 financial crisis.”

Banking Leadership and Compensation

Under the visionary leadership, the bank has undergone a significant transformation, streamlining management structures, establishing a dedicated “client organization,” and realigning top business leaders to report directly.

Market Performance

Citigroup experienced a 0.2% rise in shares after hours, following a 1% increase in regular trading hours. While the stock has shown an 11% increase over the past year, it still remains below levels from before the 2008 financial crisis.

Financial Insights

Even with a 4% growth in sales last year, the company witnessed a 38% decline in net income compared to 2022. JPMorgan Chase & Co. rewarded Chief Executive Jamie Dimon with $36 million in compensation for the year, reflecting a positive trend in executive compensations across other financial institutions like Wells Fargo and Bank of America.

Executive Compensation

Wells Fargo approved $29 million for CEO Charlie Scharf, mirroring the compensation set for Bank of America Corp.’s CEO Brian Moynihan. The Chief Executives of Goldman Sachs and Morgan Stanley received $31 million and $37 million respectively, showcasing the competitive landscape of executive compensation in the banking sector.