Scottish-born Citigroup executive Jane Fraser is to become the first woman to lead a Wall Street bank after being announced as the firm’s next boss.
Cambridge-educated Ms Fraser, who began her career at Goldman Sachs in London, will take over from current chief executive Michael Corbat in February.
The 53-year-old’s promotion to one of the top corporate jobs in the US has been widely expected since she was named Citigroup president last year.
Citi reported a 73% fall in second quarter profits
She is also currently chief executive of its global consumer banking division.
Ms Fraser joins a small group of women who have broken through to the top ranks of major financial firms.
Among them are Alison Rose, who became the first woman to head a major British bank when she was appointed chief executive of Royal Bank of Scotland – now NatWest group – last year.
Ms Fraser joined Citi in 2004 and has served in a number of top roles at the firm including as head of its US consumer and commercial banking unit and boss of its Latin America division.
Last year she received $12.5m in salary and bonuses plus a one-off $12.5m as she was promoted to the role of president.
The bank explained that the one-off award was “in support of leadership continuity and management succession planning”.
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Mr Corbat, who is retiring after 37 years at the bank including eight as chief executive, said in a statement announcing her appointment: “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.”
Ms Fraser said: “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.”
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A married mother-of-two, she has spoken publicly about the challenges of balancing her career and family life.
Interviewed by CNN in 2014, Ms Fraser said: “You can’t have it all at the same time – you can have it all, spread over decades.”
In a speech in 2016, she said: “I am a working mother. I always joke with my team and say I have three boys at home: I have a 14-year-old, a 16-year-old and a 59-year-old.”
Citi, together with other US banking giants, has been counting the cost of the coronavirus crisis on the economy – in July setting aside $7.9bn to cover the cost of loans turning sour.
The provision resulted in the firm reporting a 73% fall in quarterly profits.
Mr Corbat said at the time: “We are in a completely unpredictable environment… The pandemic has a grip on the economy, and it doesn’t seem likely to loosen until vaccines are widely available.”