Citigroup Elevates CEO Pay as Turnaround Gains Momentum

Citigroup US1729673582

Citigroup?s board rewarded chief executive Jane Fraser for the bank?s ongoing transformation with a substantial raise in her 2025 compensation. The package totals $42 million for 2025, up 22% from the previous year, and is structured with a base salary of $1.5 million, cash incentives of about $6 million, with the majority awarded as deferred stock. The directors highlighted Fraser?s execution on regulatory milestones and a simplification of internal structures as key drivers behind the boost.

The remuneration decision underscores a year in which Citigroup outperformed many peers. The company posted a strong 2025, with Fraser?s leadership driving core operational improvements even as the group undertook a wide-ranging restructuring. In his remarks, the board noted a notable outperformance in the stock market relative to the broader sector, where rivals broadly stagnated while Citigroup?s shares climbed by roughly two-thirds.

Sector headwinds weigh on the shares

Despite the favorable annual performance, Citi?s stock faced selling pressure toward the end of the period. The price fell 5% on the most recent trading day, closing at $111.47. The decline aligned with a broader pullback in the financial sector, as large banks lagged the overall market.

Investors are weighing the ongoing restructuring costs against the benefits of higher efficiency and increased net interest income. Market observers view the latest pullback as a reflection of the elevated expectations following last year?s rally.

Focus on headcount reductions and the outlook for returns

A cornerstone of Citi?s strategy remains aggressive staffing reductions. The plan calls for roughly 20,000 positions to be eliminated by the end of 2026 to lower long-term expenses. Internal reports have suggested a potential further wave of layoffs could be announced as early as March 2026, targeting mid- and upper-management roles.

Looking ahead, key dates will shape the stock?s trajectory. Citi is slated to report first-quarter 2026 results on April 14. More broadly, investors will be watching the Investor Day on May 7, when management is expected to present updated projections for ROTCE (return on tangible common equity).