Jane Fraser’s ascension as Citigroup’s CEO answers a question many have had for years: When would the U.S. banking industry, dominated by men in leadership positions for decades, get its first female big bank CEO?
Today, less than 10% of Fortune 500 CEOs are women, and only three are women of color. At a congressional hearing last year, big bank CEOs — all white men — were asked if they were likely to be succeeded by female candidates one day. No one said yes. Fraser is currently in charge of Citi’s consumer bank and is set to take over in February for Michael Corbat, a 37-year Citigroup veteran, who has been CEO for eight years. She’ll be taking over one of the nation’s largest banks at a time of vast economic uncertainty – high unemployment, low-interest rates.
The largest US banks have reported sharp declines in profit as they brace for a wave of defaults. Citi’s profit plunged 73% during the second quarter as the bank’s credit costs spiked because of the pandemic. The bank has lost one-third of its market value this year. Leading in adversity is something she is comfortable with. Fraser has been in charge of the bank’s emergency response to the coronavirus pandemic in North America.