Wall Street has always been a place where numbers do the talking, but the buzz around the Citigroup compensation Vis Raghavan package is something else entirely. Usually, when a big bank hires a new head of banking, the SEC filings are a snooze. Not this time. When Vis Raghavan ditched JPMorgan Chase to join Jane Fraser’s turnaround crew at Citi, the sheer size of the "golden hello" sent shockwaves through the industry.
We're talking about a deal that pushed $75 million in total value when you stack up the annual pay with the massive buyout of his old stock. It’s a lot of money. Honestly, it’s enough to make even seasoned hedge fund managers blink.
But why did Citi pay it? Basically, they weren't just hiring a guy to run a division; they were buying a reputation.
The $22.6 Million "Starter" Salary
Let’s get the base reality out of the way. For his performance in 2024—a year where he didn't even start until June—Raghavan’s compensation was clocked at $22.6 million.
Now, if you look at the breakdown, it’s a bit of a shell game. His actual base salary is a "miserly" (by Wall Street standards) $1 million, which was prorated for the time he actually spent at his desk at 388 Greenwich Street. The real meat is in the **$22 million guaranteed award** for his first year. This wasn't left to chance. Citi agreed to this number before he even walked through the door to ensure he’d make the jump.
It’s interesting to compare this to the boss. Jane Fraser, the CEO, took home $34.5 million in 2024. Raghavan is the highest-paid lieutenant on her team, outearning Andy Morton (Markets) and Andy Sieg (Wealth).
- Base Salary: $1 million (Annualized)
- 2024 Total Comp: $22.6 million
- Sign-on Structure: 40% cash, 60% deferred equity/units
The cash portion of that $22 million—about $8.8 million—hit his pocket early in 2025. The rest is tied up in stock that he can't touch for years. It’s a classic "handcuff" move. If he quits before June 2026, he’s likely writing a very large check back to the bank.
The $52 Million Elephant in the Room
The part that really riled up proxy advisers like Glass Lewis was the $52.25 million replacement award. People see that number and think "bonus." It’s not.
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Raghavan spent over 20 years at JPMorgan. You don't just walk away from two decades at the world’s most successful bank without leaving a mountain of unvested stock on the table. Specifically, he forfeited 263,447 shares of JPMorgan stock.
Citi had to "make him whole."
This $52.25 million is split into two buckets:
- $39.38 million in deferred equity.
- $12.87 million in deferred cash.
Glass Lewis initially told shareholders to vote against Citi's pay plan because they didn't think the bank explained this well enough. Citi had to scramble and file extra paperwork to show that this wasn't just a "gift"—it was a mirror image of what he lost. The vesting schedule is brutal, too. It stretches out seven years, all the way to 2031.
Why Citi Is Betting the House on Raghavan
You’ve gotta wonder if he’s worth the price tag. Citi’s investment banking market share had dipped to a painful 3.4% around the time he was hired. Jane Fraser is in the middle of a massive "Bora Bora" restructuring project (that’s the internal code name, anyway) to trim the fat and make the bank profitable again.
Raghavan is the "hammer."
Since he arrived, he’s been raiding his old stomping grounds. At least 10 senior managing directors have followed him from JPMorgan to Citi. It’s a talent war. By paying the Citigroup compensation Vis Raghavan demanded, the bank bought a pipeline of talent that they couldn't get otherwise.
There is a lot of internal tension, though. Insiders at Citi have whispered about the "JPMorganification" of the firm. You have legacy Citi bankers who have survived rounds of layoffs watching a guy walk in with a $50 million+ sign-on while their own bonus pools are shrinking. It’s a risky cultural move.
The Fine Print and Clawbacks
It isn't all guaranteed sunshine. The offer letter, which became public via SEC filings, has some teeth.
If Raghavan gets hit with any disciplinary action under Citi's "Accountability Framework," that $22 million guarantee can be slashed. It doesn't even have to be a "for cause" firing. If he messes up the transformation goals or has a major compliance lapse, the board can claw back the cash.
Also, he moved from London to New York for this gig. Citi paid $171,000 in relocation expenses. Compare that to Andy Morton’s $11,000 relocation, and you see just how much of a "VIP" treatment Raghavan is getting.
What This Means for Shareholders
If you own Citi stock, you’re looking for a return on this investment. The bank has lowered its 2026 Return on Tangible Common Equity (RoTCE) target to 10-11%. They need Raghavan to start winning M&A mandates and IPO slots immediately to hit those numbers.
Honestly, the "golden hello" is a sunk cost now. The real test is the 2025 and 2026 performance years. If the investment banking revenue doesn't jump, that $22.6 million paycheck is going to look like a very expensive mistake in the next proxy season.
Actionable Insights for Following the Story
- Watch the League Tables: Check the quarterly rankings for M&A and Equity Capital Markets (ECM). If Citi isn't moving up from that 3.4% mark, the Raghavan trade isn't working.
- Monitor the "Exit" Flow: Keep an eye on how many veteran Citi bankers leave as Raghavan brings in his JPMorgan loyalists. High turnover can break a bank's culture.
- Check the 2026 Proxy: Next year's filing will show if his "discretionary" pay stays at the $20M+ level or if it starts to track with actual bank earnings.
The era of guaranteed mega-bonuses was supposed to be over after 2008, but for the right person, the checkbook is still very much open.
Next Steps: You can track Citigroup's upcoming quarterly earnings releases to see if the "Banking" segment revenue is growing under Raghavan’s leadership, specifically looking for year-over-year increases in advisory fees. Additionally, reviewing the 2026 Proxy Statement when it is released in early spring will confirm if his performance-based incentives were met or if the "Accountability Framework" was triggered.