Despite a nearly 40 per cent decrease in profits due to a broad restructuring, Citigroup raised CEO Jane Fraser's compensation by 6 per cent in 2023, bringing it to $26 million. 

In a regulatory filing on Tuesday, the bank stated that her compensation, comprising a $1.5 million base salary and a $24.5 million bonus, was attributed to Fraser's efforts in streamlining Citi's strategy and introducing "the most significant series of changes to its organisational and management structure since the 2008 financial crisis.”

Fraser's initiatives, outlined last year, are leading to the elimination of at least 20,000 positions at Citi, the third-largest US bank by assets, reported Financial Times. With a background at the consulting firm McKinsey and investment bank Goldman Sachs, Fraser assumed leadership in early 2021 with a directive to address Citi's underperformance compared to its industry counterparts. 

As part of her strategy, she has disclosed intentions to withdraw from retail banking operations in 14 international markets. Fraser is additionally endeavouring to free Citi from a consent order with banking regulators issued in 2020, which mandated enhancements to processes and technology following an erroneous $900 million wire transfer to creditors of Revlon, one of its clients. 

In parallel, competitors such as JPMorgan Chase, Morgan Stanley, and Goldman Sachs have also increased the compensation of their chief executives for 2023. Jamie Dimon's compensation at JPMorgan, amid the bank's record profits in 2023, increased by approximately 4 per cent to $36 million. 

James Gorman, who stepped down as Morgan Stanley's chief executive at the beginning of 2024, received $37 million, marking a 17.5 per cent year-on-year increase. Meanwhile, Goldman Sachs raised David Solomon's pay by 24 per cent to $31 million. 

Conversely, Bank of America reduced the pay of its top executive, Brian Moynihan, by 3 per cent, amounting to a $1 million decrease, bringing his total compensation to $29 million. 

Regarding Fraser's compensation, Citi stated that the compensation committee of its board of directors also took into account "competitive market levels of pay for CEOs of peer institutions.”