Citi's compensation committee has approved a 6% increase in the compensation of Jane Fraser, the company's CEO, for the 2023 financial year to $26 million (around 24 million euros), despite the bank's profit falling 38%. The head of the company is the only woman among the six executives who head the major banks in the United States (JPMorgan, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo and Citi itself) and remains the one with the least Remuneration receives from everyone.
“The Compensation Committee's decision on Ms. Fraser's 2023 incentive compensation reflected its belief that Ms. Fraser's strategic and other priorities are sound and that she is “acting quickly and judiciously with the goal of driving long-term sustainable growth, earnings.” to improve security and soundness,” the company said in a filing with the Securities and Exchange Commission of the United States (the SEC).
Citi used the end of the year to clean up its balance sheet, due in part to its exposure to Argentina and Russia, and reported losses of $1,839 million in the fourth quarter (compared to a profit of $2,513 million in the same period ). 2022). ). Fraser called the quarter “very disappointing.” For the full year, the bank's profit fell 38% to $9,228 million. Citigroup shares rose nearly 14% in 2023 after declining for three straight years
In a presentation to analysts, the bank announced a reduction of 20,000 employees, around 10% of its workforce, over the medium term. Fraser is in the process of restructuring the group into different business units, which will mean the Wall Street giant's toughest adjustment in decades, with staff cuts of almost 10%.
Compensation Committee Appreciates Citi's Simplification; among other things, the adjustment of the organizational structure to the business strategy and the exit from international consumer markets as well as the liquidation of more than 70% of total retail loans and deposits in Russia, Korea and China.
Salaries on Wall Street
Fraser's compensation for 2023 consisted of salary of $1.5 million, variable cash compensation of $3.675 million and stock awards of various types of $20.875 million. The total of 26 million compares with the 24.5 million approved a year ago. Compensation, measured using homogeneous SEC criteria, varies somewhat relative to these numbers and includes some supplemental compensation and non-cash benefits.
Among major American banks, Goldman Sachs President David Salomon's pay increase was the largest, at 24% to up to $31 million. Jamie Dimon, the president of JPMorgan, earned $36 million after his company posted record sales and profits and pushed the stock market to an all-time high. Despite all these successes, his salary increase was much more modest at 4%. Morgan Stanley's James Gorman was the highest paid of the group of big bankers, with $37 million, up 17.5%, in his final year at the helm. Bank of America cut CEO Brian Moynihan's salary by 3% to $29 million. Wells Fargo increased the salary of its boss Charlie Scharf by 18% to $29 million.
Follow all information Five days on Facebook, X and LinkedIn, or in our newsletter Five Day Agenda
The Cinco Días Agenda
The most important business quotes of the day, with the keys and context to understand their significance
received it
To continue reading this Cinco Días article, you will need a premium subscription to EL PAÍS
_