Jane Fraser, CEO of Citigroup, has emerged as the highest recipient of a pay increase among major Wall Street banks, surpassing significant figures in the industry like Jamie Dimon.
Jane Fraser’s total compensation for 2024 ascended by roughly a third, amounting to $34.5 million, as disclosed in a recent filing. This adjustment underscores Citigroup’s confidence in Fraser’s strategic decisions that aim to enhance the bank’s safety and profitability. Notably, Citigroup’s stock has outperformed its competitors, surging by approximately 20% this year.
In contrast, Goldman Sachs CEO David Solomon also experienced a notable compensation increase, earning a total of $39 million. This places both him and JPMorgan Chase CEO Jamie Dimon at the pinnacle of pay among their peers.
Bank of America’s Brian Moynihan and Morgan Stanley’s new CEO, Ted Pick, trailed slightly, with Moynihan at $35 million and Pick at $34 million, respectively. Meanwhile, Wells Fargo’s CEO, Charles Scharf, received the least, with a payout of $31.2 million, as the bank continues its path to recovery from past controversies.
Fraser’s compensation package is primarily composed of stock-linked incentives rather than cash. Her base salary remains at $1.5 million, complemented by an additional $4.95 million as a performance incentive. A significant portion, $11.55 million, comes as deferred stock, vesting over four years based on performance metrics.
The remainder of Fraser’s earnings is tied to performance share units linked to Citigroup’s return to shareholders. This structure aligns her incentives with the company’s long-term success.
In her role since 2021, Fraser has reorganized Citigroup around five core divisions, achieving a 3% revenue increase to $81.1 billion across these areas despite some setbacks, such as a $136 million fine related to past compliance issues. Fraser’s leadership is steering the company through ongoing changes to meet adjusted profitability targets.
Jane Fraser’s rise in compensation reflects Citigroup’s confidence in her leadership and strategic vision. As she continues to navigate the challenges and opportunities in the financial sector, her performance-linked pay underscores the expectations for her role in driving the bank forward amidst a competitive landscape.
