US banking giant Citi said its board of directors has elected its Scottish-born CEO Jane Fraser as chair of the Citi board.
“The board also granted Fraser a one-time equity award, consisting of restricted stock units with a grant-date value of $25 million and 1.055 million Citigroup stock options,” said Citi.
“The RSUs will vest and the options will become exercisable on a pro-rata basis following the third, fourth and fifth anniversaries of the grant date.”
John Dugan, who served as chair of Citi’s board since 2019, will become Lead Independent Director.
In 2020, Citi was the first major Wall Street bank to appoint a female chief executive when it announced that Mike Corbat would step down as CEO and be succeeded by Fraser.
St Andrews-born Fraser said: “As we get more and more of the hard yards behind us, my excitement about what’s possible for Citi grows exponentially.
“We’re standing shoulder to shoulder with clients navigating pressures and opportunities coming at them from every direction, we have a world-class team that’s committed to strengthening every aspect of our performance, and we’ve shown that we can meaningfully grow our returns for our shareholders.
“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.”
Citi said: “These actions reflect the board’s intent to ensure leadership continuity as Citi extends the growing momentum it is demonstrating in strengthening its business performance, executing its Transformation and delivering enhanced shareholder value.
“This progress is directly tied to Fraser’s track record as CEO, which includes implementing a refreshed strategy, completing nearly all of the divestitures of the international consumer businesses, attracting top-tier business leaders, simplifying and embedding more discipline into Citi’s operations, and prioritizing the Transformation to the stage where Citi is now operating at or near target state for two-thirds of the Transformation programs.”
Dugan said: “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.
“She has the vision, drive and determination to ensure that Citi not only builds on this progress but thrives in this era of both continued macro uncertainty and unprecedented innovation. I very much look forward to continuing to work closely together in our respective new roles.”