Citigroup president Jane Fraser to get US$12.5m after promotion

[SEATTLE] Jane Fraser, who was promoted to the No 2 job at Citigroup Inc last month, is getting a US$12.5 million bonus as the bank looks to retain a likely successor to chief executive officer Michael Corbat.

The board's compensation committee granted the award "in recognition of Ms Fraser's recent promotion to president and to enhance leadership continuity and management succession planning", according to a regulatory filing Wednesday just before the Thanksgiving holiday.

Half of the award is in cash and half in stock. Both will vest in annual instalments over four years.

Ms Fraser's promotion put her in position to become the first woman to lead a major US bank as the industry is under pressure to improve diversity. In April, white men running seven of the largest US banks were grilled at a congressional hearing about why their companies have never put a woman in charge. Several, including Mr Corbat, said they could imagine one succeeding them.

Ms Fraser received more than US$9 million in total compensation in 2018, for leading Citigroup operations in Latin America. Mr Corbat was paid about US$24 million last year. Wednesday's award was reported earlier by the Financial Times.

BLOOMBERG