Citigroup lifts Jane Fraser's pay to $26 million

Citigroup lifted CEO Jane Fraser's pay about 6% to $26 million for a year in which she kicked off a major overhaul of the Wall Street giant to simplify operations and boost profitability.

The New York-based bank awarded Fraser a total of $1.5 million in salary and $24.5 million in stock-based and cash incentive awards for 2023, it said in a filing Tuesday. Fraser, who's been in her post since March 2021, was the only major bank CEO to get a raise for 2022, a move largely attributed to it being her first full year running the company.

READ MORE: Which big bank CEOs got hefty pay raises in 2023?

The increase in pay comes after Fraser initiated what's billed as the largest reworking of Citigroup in decades, designed to propel the firm from a banking underdog to one competitive with its more profitable peers. Last month, the bank said it would cut 20,000 roles in its bid to boost returns.

READ MORE: Goldman boosts CEO Solomon's pay 24% after firm's profit slumps 24%

The compensation committee of Citigroup's board believes Fraser's "strategic and other priorities are sound and that she is executing on them promptly and thoughtfully, with an eye towards driving long-term sustainable growth, improved returns and enhanced safety and soundness," according to the filing.

Citigroup's shares rose nearly 14% last year after three consecutive years of declines. Net income, however, dropped by 38% as revenue slowdowns across the bank's markets, wealth and banking divisions were compounded by rising expenses due to investments across most of the business.

The pay package for Fraser, the only female head of a U.S. banking giant, remains the lowest of her cohort.