Ratification of PwC as Auditor slide image

Ratification of PwC as Auditor

MANAGEMENT PROPOSALS Proposal #4: Approval of Amendment to Long-Term Incentive Plan The Board of Directors recommends you vote FOR this proposal JPMorgan Chase's Long-Term Incentive Plan (the "Plan") was last approved by shareholders on May 17, 2011. Pursuant to its terms, the Plan has a four-year duration and will expire on May 31, 2015. The primary purpose of the amendment is to extend the term of the Plan for an additional 4 years (until May 31, 2019), and to authorize 95 million carryover shares from the existing Plan pool (canceling approximately 157 million shares out of the 252 million shares remaining, as of February 28, 2015) We believe that voting in favor of our proposed amendment to the Firm's Long- Term Incentive Plan is important, as a well-designed equity program serves to align employees' long-term economic interests with those of shareholders while incurring reasonable dilution to shareholders. Without such approval, the Firm would lose a critical shareholder alignment feature of our compensation framework The proposal is organized around three key considerations that we believe shareholders should focus on in their evaluation of our Plan: 1. We use shares responsibly and have significantly reduced our request for shares to be made available under the Plan based on shareholder feedback. 2. Our equity practices promote the long-term interests of shareholders and create a culture of success amongst our employees. 3. Our equity program reinforces individual accountability through strong recovery provisions. 32% 32% 32% JPMorgan Chase & Co. 1 See note 3 on slide 12 2 See note 4 on slide 12 3 See note 5 on slide 12 21% 19% 18% American Express 43% 39% 40% Bank of America 36% 2012 2013 2014 31% 31% Historical Total Potential Dilution ¹ Historical Compensation Expense Ratio³ Citigroup Historical Burn Rate² 7 14.9% 2010 2.5% 2010 38% 37% 37% Goldman Sachs 17.0% 2011 For additional detail, see 2015 Proxy Statement pages 74-82 1.9% 2011 Consistent decrease in potential Dilution 60% 14.2% 2012 Consistent decrease in Burn Rate 1.9% 2012 50% 52% 12.6% Morgan Stanley 2013 1.5% 2013 33% 11.5% 2014 1.0% 2014 36% 35% Wells Fargo JPMORGAN CHASE & Co.
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