Citigroup Raises CEO's Salary To Rs 215 Crores Despite Plan To Layoff 20,000 Employees

At a time when the bank's employees are staring at 20,000 layoffs which are expected to be done in next two years, Citigroup has further increased its CEO's already mammoth salary.

Citigroup Raise CEO's Salary To Rs 215 Crores

bloomberg

Citigroup's recent regulatory filings show that it hiked its CEO Jane Fraser¡¯s compensation by 6% to $26 million (approx Rs 215 crore) in 2023 even as the bank had a "very disappointing" fourth quarter of the previous year.

She received a $3.7 million cash bonus in addition to her base salary of $1.5 million, as well as $20.8 million in deferred performance-linked stock. Citi CEO Fraser's pay was linked to her implementation of ¡°the most consequential set of changes to its organizational and management model since the 2008 financial crisis,¡± according to the bank's board, as reported by the New York Post.

Salary Hike Despite Citigroup's Plan To Layoff 20,000 Employees

reuters

This salary hike for Citigroup's CEO comes despite the expected 20,000 layoffs at the bank. As part of a corporate reorganization intended to increase profits and give cash back to shareholders, Citigroup plans to eliminate 20,000 jobs over the course of the next two years, the US bank announced had last month.

The change will result in a headcount of roughly 180,000 in 2026, down from 240,000 at the end of 2022. It will also take into account the anticipated spinoff of Citi's Banamex subsidiary in Mexico.

"Last month we announced consequential changes that align our organizational structure with our strategy and changes how we run the bank," CEO Fraser said. "When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders."

Overall, Citi reported a fourth-quarter loss of $1.9 billion compared with profits of $2.5 billion in the 2022 period. Revenues fell three percent to $17.4 billion.

Jane Fraser Had Become The First Female To Head A Major US Bank

Since March 2021, the British-American banking executive has served as Citigroup's CEO. She had become the first female head of a major US bank with this appointment. Jane had joined Citigroup in 2004. as the Head of Client Strategy in investment and corporate banking division.

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