Citi announces appointment of New CEO in 2021
Citi has announced that its current CEO, Michael Corbat is set to retire in February 2021 after 37 years at Citi. The Board of Directors have reportedly selected Jane Fraser, currently Citi’s President and CEO of Global Consumer Banking, to succeed him as CEO in the coming year.
Fraser has also been elected to the Board of Directors, with service beginning immediately, the firm said in a press release.
Michael Corbat, CEO, Citi, said: “I am extremely proud of what we have accomplished in the past eight years. We completed our transformation from the financial crisis and emerged a simpler, safer and stronger institution. Across our businesses, we made investments in products where we saw opportunities for growth, and Citi has regained its place as a leader in banking. We doubled down on our global network, making it indispensable for our clients and gained significant share across our markets and banking franchises. In consumer banking, we rationalized our footprint and embraced the push to digital, making it a centerpiece of our branch-lite footprint and we now deliver best-in-class products and experiences to our customers.”
“Our financial performance improved steadily and significantly during the eight years before COVID, as we kept our commitment to increase our return on and of capital to our shareholders. From 2012 to 2019, Citi’s net income increased from USD7 billion to nearly USD20 billion, and our Return on Tangible Common Equity increased from 5% to over 12%, closing the gap with our peers. We went from returning hardly any capital to returning nearly USD80 billion in capital to our shareholders over the last six years.”
“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,” he continued.
“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. We know there are products where we can still gain share; we know that the expectations of our customers and clients keep increasing and we have to work harder to keep up. And as the world’s most global bank, safety and soundness always have to be a foundation of our institution. We have launched significant investments in our infrastructure as part of our push to make strengthening our risk and control environment a strategic priority for the firm.”
“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,” Corbat concluded.
John C. Dugan, Chair, Board of Directors, Citi, said: “The Board deeply appreciates Mike’s many contributions to Citi, and he will leave the firm in a much stronger position than he found it.”
“He led with integrity and has been dedicated not only to the performance of the firm, but also to the well-being and growth of our people. He has helped make Citi a place where they are proud to work.”
“We believe Jane is the right person to build on Mike’s record and take Citi to the next level. She has deep experience across our lines of business and regions, and we are highly confident in her. Jane’s ability to think strategically and also operate a business are a unique combination that will serve our company well,” Dugan added.
Jane Fraser, Incoming CEO, Citi, said: “I am honoured by the Board’s decision and grateful to Mike for his leadership and support. The way our team has come together during this pandemic shows what Citi is made of. Our balance sheet is strong and our commitment to serving our clients and communities is even stronger. I will do everything I can to make all of our stakeholders proud of our firm as we continue to build a better bank and improve our returns. We will invest in our infrastructure, risk management and controls to ensure that we operate in a safe and sound manner and serve our clients and customers with excellence. Citi is an incredible institution with a proud history and a bright future. I am excited to join with my colleagues in writing the next chapter.”
Jane Fraser is currently the President of Citi and the Chief Executive Officer of Global Consumer Banking. Her global responsibilities include all Consumer businesses in 19 countries, including Retail Banking and Wealth Management, Credit Cards, Mortgages and the associated Operations and Technology, the firm reports.
Before this role, she was the Chief Executive Officer of Citi’s Latin American region from 2015 to 2019. From 2013 to 2015, she was the Chief Executive Officer of the US Consumer and Commercial Banking and CitiMortgage. From 2009 to 2013, Fraser served as the Chief Executive Officer of Citi's Private Bank. Prior to that, Jane was the Global Head of Strategy and Mergers & Acquisitions for Citi from 2007 to 2009. She joined Citi in 2004 in the Corporate and Investment Banking division. Before joining Citi, Fraser was a Partner at McKinsey & Company. She started her career at Goldman Sachs in the Mergers & Acquisitions department in London and then worked for Asesores Bursátiles in Madrid, Spain.
Citi has also said that it will name a new CEO of Global Consumer Banking in the coming weeks.