Citigroup CEO receives $34.5 million for 2024 performance

In a recent 8-K filing with the Securities and Exchange Commission, Citigroup Inc (NYSE:C). disclosed the 2024 compensation details for its Chief Executive Officer, Jane Fraser. The Compensation Committee of Citigroup has set Ms. Fraser’s direct compensation at $34.5 million, acknowledging her leadership in executing strategic priorities and her role in steering the company towards improved financial performance and sustainable growth. The decision comes as Citigroup’s stock trades near its 52-week high of $84.67, with an impressive 59.58% return over the past year.

The compensation package includes a base salary of $1.5 million, a cash incentive of $4.95 million, deferred stock valued at $11.55 million, and performance share units (PSUs) worth $16.5 million. The deferred stock and PSUs are subject to performance conditions and vesting schedules.

The decision reflects the company’s satisfaction with Fraser’s leadership in focusing on five interconnected businesses, exiting 14 international consumer markets, and achieving notable financial milestones in the 2024 fiscal year. Citigroup reported a 3% increase in full-year revenues to $81.1 billion, a 37% rise in net income to $12.7 billion, and a 47% jump in diluted earnings per share to $5.94. The company also returned $6.7 billion in capital to its common shareholders and maintained a Common Equity Tier 1 Capital ratio of 13.6%.

The filing highlighted Fraser’s role in providing greater transparency, modernizing infrastructure, attracting key talent, and flattening the management structure. Additionally, Citigroup closed a Consent Order with the Federal Reserve Board related to anti-money laundering and Bank Secrecy Act deficiencies, and is on track with the wind-downs of consumer businesses in certain international markets.

The Compensation Committee also considered the absolute and relative total shareholder returns during 2024, aligning executive compensation with shareholder value creation. With a market capitalization of $158.8 billion and strong momentum indicators, InvestingPro subscribers can access detailed analysis through comprehensive Pro Research Reports, which transform complex Wall Street data into actionable intelligence for smarter investing decisions.

Further details on Citigroup’s incentive compensation programs and the material elements of the 2024 compensation awarded to Fraser and other executive officers will be available in Citigroup’s 2025 Proxy Statement, expected to be filed in March 2025. For investors seeking deeper insights, InvestingPro offers exclusive access to financial health scores, Fair Value estimates, and over 30 premium metrics for Citigroup and 1,400+ other US stocks.

This report is based on a press release statement and provides a factual summary of the compensation details without speculation or subjective assessment.

In other recent news, Citigroup Inc. has seen several significant developments. The banking giant has appointed Nicole Giles as its new Chief Accounting Officer and Controller, filling roles previously held by interim officers. Giles comes from J.P. Morgan Chase & Co., bringing a wealth of experience to her new position at Citigroup.

In addition to this appointment, Citigroup has launched a new preferred stock series, the 6.950% Fixed Rate Reset Noncumulative Preferred Stock, Series FF. This initiative represents an expansion of the company’s capital structure. Furthermore, Citigroup has issued 6.020% Fixed Rate / Floating Rate Callable Subordinated Notes due January 24, 2036, as part of its ongoing capital management strategy.

Meanwhile, the Federal Reserve has ended climate stress tests for major US banks, including Citigroup. This move will relieve these institutions from submitting data for the Fed’s Climate Scenario Analysis Exercise this year. Lastly, a lawsuit against Citigroup by New York Attorney General Letitia James will proceed, following a judge’s denial of the bank’s motion to dismiss. The case alleges that Citigroup failed to protect and reimburse customers who were victims of fraud. These are just some of the recent developments involving Citigroup.

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