Citigroup just boosted its CEO's pay to $26 million even as it plans to slash thousands of jobs
- Citigroup CEO Jane Fraser received a 6% compensation increase in 2023, totaling $26 million.
- The raise comes as Citigroup plans to cut 20,000 jobs over the next few years.
Citigroup CEO Jane Fraser received a 6% pay boost in 2023, a new SEC filing shows, as the banking giant prepares to slash thousands of jobs over the next few years.
Fraser received $26 million in 2023; most of her pay comprised performance-based stocks and cash incentives. According to the filing, Citigroup concluded that Fraser implemented the "most consequential set of changes to its organizational and management model since the 2008 financial crisis."
These organizational changes include the bank splitting into five business units — services, trading, personal banking, banking, and wealth management — and the loss of 20,000 jobs.
The filing notes that there is still "substantial additional work to be done" by Fraser at the company, which experienced a 38% drop in profits last year.
"The Compensation Committee's 2023 incentive compensation determination for Ms. Fraser reflected its belief that Ms. Fraser's strategic and other priorities are sound and that she is executing on them promptly and thoughtfully, with an eye towards driving long-term sustainable growth, improved returns and enhanced safety and soundness," the filing reads.
Fraser still received one of the lowest payouts among her male banking peers. CEO David Solomon of Goldman Sachs received $31 million last year, JPMorgan Chase CEO Jamie Dimon received $36 million, and Morgan Stanley CEO James Gorman was awarded $37 million.
Fraser, who became Citigroup's CEO in 2021, took charge of the bank's corporate overhaul that will result in the loss of 20,000 jobs by 2026. In 2023, the company also slashed 10% of upper management positions, per Bloomberg.
The bank, which said it experienced a "very disappointing" Q4 in 2023, said its new restructuring could save the company $2.5 billion and provide returns to shareholders.
Citigroup is not the only financial company letting go of workers in 2024: Thousands of employees across the US, from Google to Microsoft, are experiencing job cuts this year.
Representatives for Citigroup declined to comment to Business Insider.