Citigroup chief executive Jane Fraser was set to receive a $25 million stock bonus, along with more stock options, after being named chairwoman of the Citi board of directors.
“I have always had deep conviction in Citi’s potential to be a bank that embodies excellence in every way, and while I’m proud of what this team has delivered in the last five years, I know the momentum we’re building will carry us much further,” Ms Fraser said in a statement on Wednesday, when the vote took place.
Ms Fraser joined Citi as chief executive in 2021. Citigroup stock is up more than 38 per cent in the year so far. Shares were trading 0.33 per cent higher on Thursday at $96.62 each.
Citi said the decision was tied to Ms Fraser's record as chief executive, which includes completing almost all divestitures of the international consumer business and attracting high-level talent.
With her election as board chairwoman, she was also awarded a one-time equity award that consists of restricted stock units with a grant-date value of $25 million and 1,055,000 Citigroup stock options.
The announcement means that Citi joins other large US banks including JPMorgan Chase, Goldman Sachs and Bank of America in consolidating their giving chair roles to their chief executives. Well Fargo also made a similar move earlier this year when it awarded chief executive Charlie Scharf a $30 million equity package.
The bank, which is based in New York, had separate chief executive and board chair positions for nearly two decades.
“Citi is in a fundamentally different place than it was when these roles were separated. Jane’s very deliberate plan to make Citi a simpler and more focused bank has created meaningful shareholder value,” Citi director John Dugan said in a statement.
Ms Fraser was also recently named co-chairwoman of the US-Saudi Business Council, based in Vienna, Virginia. Established in 1993, the council said its mission is to support the strategic business alliance between the US and Saudi Arabia. The council has another location in Riyadh.
Ms Fraser will serve as co-chairwoman alongside Lubna Olayan, chairwoman of the Corporate Board of The Olayan Group and a trustee of the World Economic Forum.
“Their combined vision and expertise will be invaluable as we define the next chapter of US-Saudi business relations,” Charles Hallab, president and chief executive of the US-Saudi Business Council, said in a statement.
Ms Olayan succeeds Abdallah Jum'ah, former Aramco chief executive and chairman of Saudi Investment Bank, while Ms Fraser succeeds former Jacobs Engineering Group chief executive Steve Demetriou.
The announcement came about two weeks before US President Donald Trump was expected to host Saudi Crown Prince Mohammed bin Salman at the White House, where the two were expected to hold talks on artificial intelligence, trade and national security.
