National Post (National Edition)

Women of Wall Street ask `Who's next?' after Citi makes history by elevating Fraser

- LANANH NGUYEN AND MAX ABELSON

Jacki Zehner, the first female trader to make partner inside Goldman Sachs Group Inc., was sitting at her kitchen table in Utah last Thursday morning when her husband told her he had good news: “Wall Street has their first female CEO.”

She was happy to hear that Jane Fraser will run Citigroup Inc. — mostly.

“To have a female at the top of a large financial institutio­n is a step forward, but it's a baby step,” she said in an interview. “Acknowledg­ing that it's never been true before, and it's true now, is something to celebrate. That being said, it doesn't mean that there's systematic change. It represents one female.”

As congratula­tions rolled in across Wall Street last week for its newest boss, diversity advocates said the financial industry has a lot more to do to reach gender equality and pay equity. It's taken this long to appoint the first, and only, female chief executive at one of the biggest U.S. banks, and efforts to get more women into senior management have been slow to boost representa­tion.

The top groups of influentia­l operating teams that oversee the six biggest U.S. banks are dominated by men. Women make up a third or less of those groups inside all of them except JPMorgan Chase & Co., where the gender split is even. In total, there are two men for every woman who sit in those powerful Wall Street spots.

One of those women, Catherine Bessant, the top technology executive at Bank of America Corp., called the promotion “great news for the company and for women everywhere,” on Twitter, writing that it was “a big and fantastic moment.”

Last year, when a group of white, male bank bosses testified before a House committee, Rep. Al Green asked if they thought their successors would look any different than them. None raised a hand.

Green was encouraged by the news of Fraser's appointmen­t. “This was something that uplifted my spirits, knowing that there is still progress being made,” he said in an interview. “Notwithsta­nding the fact that not enough progress had been made.” All of the top bank CEOs will still be white.

“Jane's appointmen­t was the result of many years of investment for Citi,” said Lorraine Hariton, the CEO of Catalyst, a group that advocates for women in leadership. “It's not just something you wake up and do overnight.”

With Fraser's appointmen­t to CEO, the 16-member Citigroup board, already the most gender-diverse among S&P 500 banks, will become the only bank board that is evenly split by gender, according to data compiled by Bloomberg. The nominating and governance committee, which plays a key role in selecting the CEO, is also chaired by a woman.

There are 31 women who already lead S&P 500 companies, according to Catalyst. Having a woman heading up such a large bank will open up opportunit­ies for others in the field, said Dina Powell, a former official in President Donald Trump's administra­tion who's now a Goldman partner. “Her success and leadership will pave the way for women in finance,” she said. “A significan­t milestone. She has always tried to lift and empower women around her.”

Betsy Duke, who was one of the most powerful women on Wall Street before she stepped down as the head of Wells Fargo & Co.'s board this year, said Citigroup's new boss “is the right woman at the right time, and Citi is the right company for her.”

Zehner, who's now an investor, left Goldman more than a decade and a half ago and has seen change come glacially inside the big American banks. “To say it was slow would be an understate­ment. There has not been a lot of progress, despite a lot of awareness.”

Here's what other leaders said about Fraser's appointmen­t:

Adena Friedman, president and CEO of Nasdaq Inc.

“Jane is an outstandin­g executive who is respected throughout the financial industry, and she is a superb choice to be the next CEO of Citi,” wrote Friedman, the first female CEO of a global exchange, in an email. “Her appointmen­t as CEO also represents another significan­t milestone for women in the financial industry and across corporate America, and it sends an important message to all profession­al women — there are no limits to our capabiliti­es and our potential.”

Mary Mack, Wells Fargo's CEO of consumer and small business banking

“It has been wonderful to see women rising through the ranks at so many banks, but (this) is an important first for women in the financial services industry. I am thrilled to congratula­te Jane and hope this is the first of many examples of the progress we are making across the industry.”

Natasha Lamb, managing partner at Arjuna Capital LLC

“Citigroup is once again leading the way on gender equity, turning the boys' club of Wall Street on its head. Let's hope this is not just a one-off, but the beginning of a sustainabl­e trend to increase diversity — both gender and racial — across the industry. Now, more than ever, we need strong leadership and resilient organizati­ons that benefit from the innovation and outperform­ance diversity affords.”

Rachel Robasciott­i, founder of social-justice investing firm Robasciott­i & Philipson

“I'm delighted — and, at the same time, there is tremendous work that remains to be done across Wall Street in terms of equity and inclusion,” she said. The fact that Fraser will be the only top female banking chief, she added, is “shocking.”

Cynthia DiBartolo, CEO of broker-dealer Tigress Financial Partners

“This, in many ways, becomes an invitation to individual­s who thought Wall Street was not for them or that they would never fit in. Diversity of thought at that CEO level on Wall Street has never existed before. Diverse companies are more innovative, they outperform their peer groups. I really started to well up and get that lump in my throat and thought, `this has been a long time coming.'”

 ?? VICTOR J. BLUE / BLOOMBERG FILES ?? Catherine Bessant, above, the top technology executive at Bank of America, called Jane Fraser's promotion “great news for the company and for women everywhere,” on Twitter, writing that it was “a big and fantastic moment.”
VICTOR J. BLUE / BLOOMBERG FILES Catherine Bessant, above, the top technology executive at Bank of America, called Jane Fraser's promotion “great news for the company and for women everywhere,” on Twitter, writing that it was “a big and fantastic moment.”
 ?? ERIN SCOTT / REUTERS FILES ?? Citigroup CEO Jane Fraser's appointmen­t “was the result of many years of investment for Citi,” said an observer. “It's not just something you wake up and do overnight.”
ERIN SCOTT / REUTERS FILES Citigroup CEO Jane Fraser's appointmen­t “was the result of many years of investment for Citi,” said an observer. “It's not just something you wake up and do overnight.”

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