(Reuters) – Citigroup Inc. Cn Consumer banking chief Jane Fraser on Thursday named her as the next chief executive, making her the first woman to head a major Wall Street bank.
Fraser, 53, has been a rising star in the financial industry with a career that spans investment banking, wealth management, mortgage workouts and strategy in troubled America – a key geography for Citigroup. She said she would take over the reins from CEO Michael Corbett in February.
Fraser’s promotion to CEO was celebrated as a step in the right direction for an industry that has few women or diverse executives in its top ranks.
“Great news for women in the company and everywhere!” Tweeted Bank of America Corp BAC.N Head of Operations and Technology Kathy Besant. “A big and wonderful moment.”
In an internal memo, Corbett described Fraser’s new role as a spectacular event and a matter of pride for Citigroup.
Fraser has spoken publicly about the struggles she faced as a young woman, and then a working mom in a competitive industry.
In an event organized by an international business group in 2016, she described her early days as an investment banker, when women were expected to work and dress like men to succeed, as well as their experience at home. There was also the juggernaut of life and work.
“I am often asked, ‘Can you have it all? Can you do it all?'” And I say, ‘Yes, you can, but you can’t do it all at once And don’t expect everything at once. “
Fraser joins a small group of women who have broken through the glass ceiling to access the C-suite at major financial firms.
In addition to Besant, Fidelity Investments’ CEO is Abigail Johnson; JP Morgan’s consumer lending head Marianne Lake and its finance chief Jennifer Pipszak; And Alison Rose, CEO of British bank NatWest.
Only 37 companies are led by women in this year’s Fortune 500 list.
Fraser began his career at Goldman Sachs Group Inc. GS.N Mergers and acquisitions division in London, then worked for Acesorus Bertiles in Madrid. She joined Citigroup 16 years ago and was credited internally for helping the bank recover after the financial crisis, when it took $ 45 billion in taxpayer funds to survive. Through the years, it has pursued a customer strategy in investment bank of Citibank as well as its private bank, its mortgage business and its operations in Latin America, which accounted for 14% of annual revenue in 2019.
He was named as a potential CEO candidate at Wells Fargo & Company WFC.N Last year, before former JP Morgan executive Charles Schurf settled on the board. In October, Fraser was promoted to the role of president and tasked with leading its global consumer bank, a move widely seen as a precursor to his rise.
Dylan Haggart, a partner at Valuablet Capital, which owns 27 million shares of Citigroup, said the hedge fund had teamed up with Fraser in recent years to “lead thoughtful strategic change and drive operational results.” Developed a deep appreciation for competence. “
Credit Suisse analyst Susan Roth Katzke said the hype happened sooner than expected, and investors are eager to get an audience for it. “Investors will need to hear more from Jane, sooner rather than later,” she said.
Corbett, who has spent 37 years at Citigroup, was launched into the CEO role in 2012, when his predecessors were suddenly under pressure from investors. Since then, they have shifted Citigroup’s strategy to focus on corporate businesses, where it is a force for fixed income income and cash management as well as credit card and digital consumer banking.
He also destroyed a huge book of distressed assets known as Citi Holdings, effectively turning the bank into a bail-out, money-losing entity intended as a thinner, more profitable version of the world With global operations.
Citigroup’s annual profits more than doubled under Corbett, but rival banks have fared better. Only recently has Citigroup been able to meet the performance targets that Corbett set and deferred over the years.
For Wall Street peers, its shares have increased 43% during their tenure, versus 63% to 188%.
Reporting by C. Nivedita and Noor Zainab Hussain in Bengaluru; Additional reporting by David Henry in New York and Svea Herbst-Bayliss in Boston; Writing by Anirban Sen and Lauren Tara Lakapra; Editing by Sriraj Kalluvilla and Nick Ziminski