Summary
Citigroup Inc. (Citi) has filed an 8-K report detailing the 2024 incentive compensation awards for its CEO, Jane Fraser. The Compensation Committee approved a total direct compensation of $34.5 million for Ms. Fraser, comprising a $1.5 million base salary and a $33 million incentive award. This award reflects the committee's assessment of her leadership in executing strategic priorities, including risk and control transformation, organizational alignment, and simplification of the business through exiting international consumer markets. The report highlights Ms. Fraser's role in driving stronger financial performance, marked by increased revenues across Citi's five core businesses, positive operating leverage, and improved net income and EPS. Significant progress in remediating issues identified in prior consent orders, including the closure of a 2013 FRB consent order and the resolution of certain 2020 consent orders, were also cited as key factors. The compensation package includes deferred stock and performance share units, aligning Ms. Fraser's incentives with long-term value creation and shareholder returns.
Key Highlights
- 1CEO Jane Fraser awarded $34.5 million in total direct compensation for 2024 performance.
- 2Incentive award of $33 million is structured as 15% cash, 35% deferred stock, and 50% performance share units (PSUs).
- 3Compensation reflects CEO's execution on strategic priorities: risk/control transformation, organizational simplification, and exit from international consumer markets.
- 4Citi reported full-year 2024 revenues of $81.1 billion (up 3% YoY) and net income of $12.7 billion (up 37% YoY).
- 5Diluted EPS for 2024 was $5.94, a 47% increase year-over-year.
- 6Progress noted in remediating past consent orders, including closure of a 2013 AML/BSA order and resolution of some 2020 FRB/OCC orders.
- 7Capital returned to shareholders was $6.7 billion, with a CET1 ratio of 13.6%.