Citigroup named Jane Fraser as its next CEO.
Jane Fraser, a 16-year veteran of the bank, currently in charge of Citi’s consumer bank, is set to take on the role of chief executive in February for Michael Corbat, who plans to retire after 37 years at the bank, thus becoming the first woman to lead a major US bank. The move follows a handful of high profile departures at the bank, Forbes reports, including former president Jamie Forese in 2019.
According to CNN Business, before taking over Citi’s consumer bank, Fraser led the bank’s Latin America division as well as its corporate strategy and M&A group. Fraser also led Citi’s Private Bank from 2009 to 2013. Before joining Citi, Fraser worked at consulting giant McKinsey and in the M&A department of Goldman Sachs. Fraser will join a record-high number of women leading Fortune 500 companies. In recent months, Clorox, Coty, Gap and UPS named female CEOs. Still, less than 10% of Fortune 500 CEOs are women and only three are women of color. Citi has lost one-third of its market value this year, lagging not just the S&P 500 but rivals including JPMorgan and Bank of America. Shares of Citi have fallen 35% this year, while Bank of America’s are down 26% and Wells Fargo’s have lost 54%.
“Through it all, we showed the character of our people and our firm as we took leadership roles in the fight against climate change and for gender equity. Citi’s performance through COVID-19 has shown our strength and resilience, and I am confident Citi will continue to be a valuable partner to our clients and customers,” said Michael Corbat. “Of course, there is always more to do, and I believe the time is right for my successor to lead Citi through this next stage of progress (…) I have worked with Jane for many years and am proud to have her succeed me. With her leadership, experience and values, I know she will make an outstanding CEO,” he concluded.
“We believe Jane is the right person to build on Mike’s record and take Citi to the next level,” Citi’s chairman John Dugan said in a statement. “She has deep experience across our lines of business and regions and we are highly confident in her.”
Citi will name a new CEO of Global Consumer Banking in the coming weeks.