By Seth Gellman
Citi CEO Michael Corbat announced on Thursday that he was retiring after eight years in the position, putting an end to his 37 years at the bank. Jane Fraser, the current retail banking chief, will succeed him.
Corbat’s retirement completes a management overhaul at the corporation that began when last year, then-president Jamie Forese announced his departure after three decades at the bank. Forese’s stepping down followed the exit of the longtime Chief Financial Officer John Gerspach and two regional heads.
During his time as CEO, Corbat helped the financial institution climb out of its poor state after the 2008 financial crisis. Shares rose 42% since his start as CEO in October 2012. Despite his success at the bank, some have pointed out that not following its rivals JP Morgan and Bank of America by expanding physical branches was a strategic error. Compared to Citi’s 42% rise in shares, JPMorgan’s increased 141% during the same time period.
Fraser has been at the U.S. megabank for 16 years. She originally joined the Wall Street division, but quickly rose through the ranks, going from Head of Strategy and Acquisitions to CEO of the firm’s private bank to CEO of Latin American operations, then rising to head of global consumer banking. She was promoted to President last October, reportedly to keep a rival from hiring her away.
Fraser’s arrival as CEO will make her the first woman to lead a major U.S. bank. She joins the record-high number of female CEOs of Fortune 500 companies as the 39th.
Fraser, who takes over the position at an uncertain time for many banks, has been praised by many, including Corbat. Corbat said on Thursday that she would make “An Outstanding CEO” and that he was proud to have worked with her for many years. Many are looking forward to Fraser’s leadership as she looks to lead Citi through the pandemic and make sure Citi comes out of it stronger than ever before.
