Posted on 02/29/2024 10:09:55 AM PST by george76
Citigroup CEO Jane Fraser got a 6% pay bump for her performance in 2023, a year the bank's profits dropped 38% and Fraser began a dramatic restructuring that will result in an estimated 20,000 job cuts.
The board awarded her total compensation of $26 million,
...
The $26 million for Fraser was the lowest among CEO rivals at JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley, who received between $29 million and $37 million. Bank of America's Brian Moynihan was the only CEO among this group to experience a compensation decline.
...
Fraser had a lot to navigate in 2023, including the largest profit decline among her big rivals and what she called the "most consequential" change to how the New York lender operates in nearly two decades.
Instead of operating with two mega-divisions, she is splitting the bank into five separate units with leaders reporting directly to her. She made it clear this would mean fewer people.
"We'll be saying goodbye to some very talented and hard-working colleagues," Fraser wrote when she announced the moves in September.
The first layoffs began in November, affecting senior managers. In January the bank told analysts it plans to eliminate 20,000 positions by 2026.
...
Citi has also pulled back from consumer banking...
It is also getting out of its US municipal bond business, dismantling yet another part of an empire amassed in the 1990s when Citigroup and its CEO Sandy Weill billed the bank as a "financial supermarket" that could offer any and all services needed by consumers, businesses, and governments.
Citigroup reported a net loss of $1.8 billion in the fourth quarter ...
Fraser called the results "very disappointing"..
(Excerpt) Read more at finance.yahoo.com ...
Good work if you can get it.
Government only rewards failure.
A CEO follows the terms of their contract. They are paid based upon the successes of their contract, not if the business is a success unless the contract is set up that way.
Example:
If their contract was determined by the company to expand by opening more stores at a rate of 15% with a bonus for opening 20%, and they reached that 20% requirement, they would be paid their salary and the bonus even if the business lost money.
It’s the contract they are paid by, not the success of the business. This is one of the reasons major companies often change CEO’s as the sitting CEO has accomplished the goal they were set out to do and the contract is complete. Sometimes takes year, sometimes one year, and it depends on the task(s) completion. And because it is a binding contract, that can be proven in court if they are not paid, the CEO’s are generally paid first.
wy69
how in hell is she expected to scrape by on a mere $26,000,000.00?
Nothing wrong with this. Let’s focus on what is broken.
They all make the same claim. My pay is set by the board of directors. Then they all sit on these boards giving themselves big pay raises and bonuses.
Bidenomics for the top tier but not for the underlings.
Yep.
I’ll have to brush up my resume because I could have lost them even more, given the chance.
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