Citi chief executive Jane Fraser has been awarded a one-off bonus of $25 million as she is elected chair of the board.

John Dugan, who has served as chair since 2019, will become lead independent director at the bank.

Citi said that the move reflects the board’s intent to ensure leadership continuity as it strengthens business performance, executes its transformation, and delivers enhanced shareholder value.

The move comes as the bank continues its broader focus on streamlining its structure and addressing regulatory failings which have led to significant fines in recent years.

During her nearly five-year tenure as chief executive, Fraser has implemented a refreshed strategy, completing nearly all of the divestitures of the international consumer businesses.

The bank said that she has also attracted "top-tier" business leaders, simplified and embedded more discipline into operations, and prioritised its transformation to the stage where the organisation is now operating at or near target or two-thirds of its programmes.

“As we get more and more of the hard yards behind us, my excitement about what’s possible for Citi grows exponentially," said Jane Fraser, chief executive and chair of the board, Citi. "We’re standing shoulder to shoulder with clients navigating pressures and opportunities coming at them from every direction, we have a world-class team that’s committed to strengthening every aspect of our performance, and we’ve shown that we can meaningfully grow our returns for our shareholders.

"I have always had deep conviction in Citi’s potential to be a bank that embodies excellence in every way, and while I’m proud of what this team has delivered in the last five years, I know the momentum we’re building will carry us much further.”

Earlier this year, reports revealed that Citi was planning to make significant cuts to the number of IT contractors at the bank, instead hiring thousands of new permenant staff.

According to Reuters, as of March, contracted staff made up 50 per cent of the IT workforce at the bank.

An internal presentation seen by the news agency unveiled plans to increase technology employees from 48,000 in 2024, to 50,000.

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