Citigroup shareholders approve the payment of 2024 for the CEO, the executives, the new actions for the subsidies

By Tatiana Bautzer and Niket Nishant

New York (Reuters): A large majority of cytigroup shareholders approved Jane Fraser’s CEO 33% payment up to $ 34.5 million at a virtual annual meeting held on Tuesday, as well as compensation for other higher executives.

During the meeting, some shareholders questioned the total size of the compensation. One specifically questioned bonuses on what the bank calls “transformation”, which includes the work to fulfill the consent orders of the regulators of 2020 and 2023 that require the reduction of risk. The bonuses were paid even when the bank received $ 136 million last year due to lack of progress in fixing data defects.

The President of Citigroup, John Dugan, said that the Council had made the management “responsible” by reducing the payment of the transformation bonus by 2024 and said that the bonus program would not be renewed. Despite criticism, the payment package was easily approved.

Citigroup’s CEO, Jane Fraser, said that the expenses for regulatory solutions will be even higher this year, but that they will fall from 2026.

Fraser said that the bank’s restructuring he has directed in recent years has made it more resistant to economic changes and volatility. “The world is at the cusp of deep structural change,” Fraser said, referring to the new economic policies in the United States.

Citigroup’s benefit increased in the first quarter, as their merchants won a drop in volatile markets that pushed for customer activity.

The issuance of 30 million new shares that will be used as variable compensation payments was also approved by more than 90% of shareholders, as well as the re -election of the Board of Directors.

All the shareholders’ proposals, including one that required a limit to the separation packages, were rejected, the bank said.

(Report by Tatiana Bautzer and Niket Nishantiting by Tomasz Janowski)