CEO's pay hiked to $26 mn in 2023, Citigroup says amid 20,000 job cuts plan

Jane Fraser's pay included a base salary of $1.5 million and a cash bonus of $3.7 million as well as $20.8 million in deferred performance-linked stock, the company said

Citigroup Chief Executive Officer (CEO) Jane Fraser's compensation rose to $26 million, a 6 per cent annual increase, the company filing showed on Tuesday.

Fraser's pay included a base salary of $1.5 million and a cash bonus of $3.7 million as well as $20.8 million in deferred performance-linked stock, the company said.

The company cited Fraser's performance in executing the "most consequential set of changes to its organisational and management model since the 2008 financial crisis."

Fraser's role in tackling risk management to address regulatory punishments that date back to 2020 was also highlighted by the lender. She took onto the role of CEO in March 2021.

The bank will slash 20,000 jobs in two years

The revelation has come nearly a month after the lender announced its plan to axe more than 20,000 jobs over the next two years due to disappointing quarterly results. Citigroup reported its worst fourth quarter October-December) in over a decade, amounting to $1.8 billion.

The move will impact about 8 per cent of the 239,000 workforce of the US investment bank.

"Efforts to simplify its structure will be largely completed this quarter, saving $1 billion and eliminating about 5,000 mostly managerial roles," CEO Jane Fraser said last month.

The company estimated that the cuts would cost about $1.8 billion but said it would have saved $2.5 billion a year by 2026. The bank expects up to $1 charges this year in severance-related costs and reorganisation, it said last month.