Jane Fraser Pay Package: Citigroup CEO Receives USD 42 Million As Citigroup Restructuring Gains Momentum

New York, February 13: Citigroup has increased the annual compensation for its Chief Executive Officer, Jane Fraser, to USD 42 million. This move represents a nearly 25 per cent raise and serves as a significant endorsement from the board as she continues to oversee a complex and high-stakes transformation of the Wall Street institution.

The pay package, disclosed in a regulatory filing on Thursday, consists of a base salary of USD 1.5 million and a bonus of USD 40.5 million for 2025. This follows a previous increase in 2024 when her compensation was raised to USD 34.5 million. The decision places Fraser among the highest-paid leaders in global finance, trailing just behind JPMorgan Chase’s Jamie Dimon, who received USD 43 million last year. Deepinder Goyal Receives 8,000 Emails After Outreach to Former Employees, Asks All to WhatsApp Him for Quicker Response.

Strategic Overhaul and Market Performance

The board of directors stated that the compensation reflects Fraser’s leadership in executing "bold choices" to position the firm for future growth. Under her guidance, Citigroup has been undergoing an ambitious restructuring process aimed at simplifying its operations. This plan includes the reduction of 20,000 jobs by the end of this year to streamline the bank's workforce.

Investors have reacted positively to these changes, with Citigroup shares rallying 66 per cent throughout 2025. In July, the stock reached its highest level since the 2008 financial crisis. The bank noted that more than 80 per cent of its transformation work is now complete, and a dedicated investor day is scheduled for May to outline the next phase of its growth strategy.

Executive Changes and Regulatory Challenges

Despite the internal progress, the bank continues to navigate regulatory hurdles. Citigroup is still working toward the termination of consent orders from the Federal Reserve and the Office of the Comptroller of the Currency. These orders are related to long-standing deficiencies in the bank’s internal controls, data governance, and risk management systems.

To further the transition, Fraser has implemented several leadership changes. In November, she named a new Chief Financial Officer, with Gonzalo Luchetti set to succeed Mark Mason in March. Additionally, the bank is integrating its US retail banking operations into its wealth division, which is led by former Bank of America executive Andy Sieg.

Financial Targets and Industry Context

Fraser’s efforts to modernise the bank have started to improve its financial metrics. Citigroup’s return on tangible common equity, a vital measure of profitability, rose to 7.7 per cent in 2025, up from 7 per cent the previous year. While this indicates progress, it remains below the bank’s stated target of more than 10 per cent by the end of 2026. Elon Musk Slams Anthropic As ‘Misanthropic and Evil’ After AI Startup Secures USD 30 Billion Funding at USD 380 Billion Valuation.

The broader banking sector has also benefited from a resurgence in trading and dealmaking activities. Like its peers Goldman Sachs and Morgan Stanley, where CEOs received USD 47 million and USD 45 million respectively, Citigroup has capitalised on a more favourable market environment to boost its overall profit margins during this period of transition.

(The above story first appeared on LatestLY on Feb 13, 2026 06:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).