Citigroup Inc. (C) announced late Tuesday that it was making changes to its Chief Executive Jane Fraser’s compensation package for 2022. The total pay package for 2022 is $24.5 million, which includes a flat base salary of $1.5 million and a total incentive award of $23 million. The company said that its compensation committee had increased Fraser’s compensation paid in deferred Citi common stock to 35% in 2022 from 20% in 2021, and cash incentive compensation to 15% from 30%.
The announcement of Fraser’s compensation package comes amidst a period of heightened scrutiny of executive pay, as waves of layoffs continue to sweep the corporate world. As companies struggle to stay afloat in the midst of an economic downturn, many are having to make difficult decisions when it comes to executive compensation.
Executives across the board have seen their pay packages reduced as companies look to cut costs and remain competitive. In the wake of the coronavirus pandemic, many companies have had to make difficult decisions when it comes to their executive compensation packages.
For Citigroup, the decision to reduce the cash portion of Fraser’s compensation while increasing the stock portion is an effort to remain competitive and keep costs down. The company is hoping that the incentive award will still be enough to attract and retain top talent, while still remaining within budget.
The changes to Fraser’s compensation package are also a sign that the company is taking the current economic climate seriously. By reducing the cash portion of her compensation and increasing the stock portion, Citigroup is sending a message that it is willing to make sacrifices in order to remain competitive in the current market.
The changes to Fraser’s compensation package are a reflection of the difficult decisions that many companies are having to make in the current economic climate. As companies look to remain competitive and keep costs down, executive pay is often one of the first areas to be targeted.
For Citigroup, the changes to Fraser’s compensation package are a sign that the company is willing to make sacrifices in order to remain competitive in the current market. By reducing the cash portion of her compensation and increasing the stock portion, Citigroup is sending a message that it is willing to make sacrifices in order to remain competitive in the current market.
At the same time, the company is also sending a message to its employees that it is committed to providing competitive compensation packages in order to attract and retain top talent. By providing a total pay package of $24.5 million in 2022, Citigroup is sending a message that it is willing to invest in its employees and provide them with the incentives they need to stay with the company.
Ultimately, the changes to Fraser’s compensation package are a reflection of the difficult decisions that many companies are having to make in the current economic climate. As companies look to remain competitive and keep costs down, executive pay is often one of the first areas to be targeted. By reducing the cash portion of Fraser’s compensation while increasing the stock portion, Citigroup is sending a message that it is willing to make sacrifices in order to remain competitive in the current market. At the same time, the company is also sending a message to its employees that it is committed to providing competitive compensation packages in order to attract and retain top talent.
