Citi, a major investment US bank, has named Jane Fraser as its next chief executive officer. Fraser currently serves as the chief of Citigroup’s Global Consumer Banking. By early next year, she will bring the company to a new milestone for being the first woman to oversee a large American bank.

Citi Incumbent CEO to Step Down

Citigroup’s current CEO Michael Corbat will step down from the post in February. Corbat actually led the company for eight years. He will then retire after serving nearly four decades at Citi.

Corbat assumed the role in 2012. He also needed to rebuild the bank after the effects of the Great Recession.

The 60-year-old executive wrote on his LinkedIn page: “I have given significant thought to when the time is right for me to hand over the reins and I have decided to retire in February.”

When Corbat got the CEO role, the company needed to deal with the 2008 financial crisis. Now, Citi navigates the pandemic as a new challenge as it braces for its next chief.

First Women to Lead a Major Bank

Fraser, Corbat’s successor, worked for Citi for 16 years. Last year, the bank even appointed her as president, which sparked speculation of her possibly replacing Corbat. By next year, Fraser will ascend as Citi’s CEO, marking as the first woman to lead a large Wall Street bank.

Moreover, CNBC reported that among the largest banks in the US, Citigroup has a board with the most women, reaching nearly 50 percent representation. 

Fraser stated: “I am honored by the Board’s decision and grateful to Mike for his leadership and support.”

Meanwhile, Corbat expressed pride for Fraser being the first woman to lead the company, which he deemed “groundbreaking.”

 “With her leadership, experience, and values, I know she will make an outstanding CEO,” Corbat stated.

Powerful Women

CNN Business remarked in an article that Fortune 500 companies see an increase in female leadership. Previously, companies like Gap and UPS appointed women chief executives. However, the publication noted that the representation in Fortune 500 still fares under 10 percent. In addition, only three are women of color.

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