‘FOR BANKS LIKE
OURS, THERE’S
A BUSINESS
IMPERATIVE TO
EXPANDING
FINANCIAL
INCLUSION’
In February, CItI PresI-
dent Jane Fraser, 53, will be-
come the first female CEO not
only of Citi but of any major Wall Street
bank. She spoke with TIME to discuss
building a diverse workforce, the
changing responsibilities of corpora-
tions and expanding the economic pie.
Your promotion to CEO has been
rightly celebrated, but we know
that moves like this require inten-
tion. Can you address the myth of
the pipeline problem?
The talent exists, full stop. What
we’ve really tried to do at Citi is make
sure diverse candidates see us as
a place where they can thrive and ad-
vance their careers. Things like strong
parental- leave policies and maintain-
ing an inclusive culture can make
a huge difference. But to see results,
you need transparency and account-
ability. A few years ago, in a move
that was pretty far outside our com-
fort zone, we publicly disclosed Citi’s
raw pay gap for women globally and
for minorities in the U.S. The data revealed we have a lot of work to do
to get more women and people of color in senior and higher- paying
roles. But we think it’s essential to give people the information they
need to hold us accountable for progress. And it’s time to kill the
notion that there’s a trade-off between diversity and meritocracy.
What are the economic and organizational benefits to Citi and
society at large in having a more diverse workforce?
If we take our cues from politics, which has become more divisive
than ever, it’s easy to view the world through a zero-sum lens. But
nothing could be further from reality, especially when it comes to the
workforce. A survey by Harvard Business Review found that diverse
companies have significantly higher revenues from innovation, and
greater margins. Research shows that if women participate equally
in the economy, global GDP would increase by 26% by 2025.
Do you agree this is a moment for governments, economies and
companies to rethink how to make money, create opportunity
and rebuild social contracts?
It’s getting outdated to think about a corporation’s obligation to so-
ciety separately from its duty to its shareholders. It’s not an either/
or. Companies like Citi occupy positions of great economic respon-
sibility, and we’ve tried to use our influence to confront inequity in
all its forms. And while we are proud to use philanthropy to advance
these efforts, the biggest impact we can make as a bank is through
our core business capabilities.
Do you think there are opportunities to be found in this crisis?
New, more efficient ways of working, for example, or long-term
investments that are being overlooked?
The pandemic has forced us to reimagine how we do business.
In normal times, for instance, when we bring a company to the pub-
lic markets, our sales force would fly around the world to meet with
investors. During the pandemic, we’ve conducted those road shows
completely virtually, with no impact to investor demand.
You operate in 160 countries. Are you concerned that current
geopolitical currents would lead to more nationalism and more
restrictive trade barriers?
We operate from the conviction that the free flow of capital expands
the market, lowers prices, increases the sources of production, en-
courages innovation and ultimately grows the economic pie. But the
reason why we’re seeing a backlash to globalization and why national-
ism is gaining strength is because the pie is not being shared equally.
Impeding trade, though, will only reduce the economic resources we
need to fix the problem.
In the near-medium terms, what makes you concerned and what
makes you optimistic?
The wealth gap is disrupting society and has caused people to lose
faith, and so much of the problem comes down to access. I worry that
the pandemic is only making it harder for people to get the education
they deserve, the health care they need, the jobs that will give them
financial security. But I also have a lot of hope that this crisis can serve
as a wake-up call for our industry. For banks like ours, there’s a busi-
ness imperative to expanding financial inclusion. There’s a growing
expectation from the public that we do that.
EXPANDING
THE PIE
Jane Fraser, the new CEO of Citigroup,
on rethinking the bank’s mission
By Eben Shapiro
JULIAN R. PHOTOGRAPHY—AFP/GETTY IMAGES
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