J.P.Morgan Shareholder Engagement Presentation Deck
B Executive Compensation
The CMDC reviews and sets ROTCE thresholds each year for that year's
PSU award with a focus on rigor
Since PSUs were first introduced, we have received ongoing positive shareholder support for this aspect of our executive compensation program. The CMDC
reviews the design and associated metrics of the PSU program with each grant with a focus on rigor and have periodically made changes in design,
including those responsive to shareholder feedback.
CONSISTENT OUTPERFORMANCE
The Firm's consistent relative outperformance of our
eleven PSU peers is demonstrated by the strength of
our 3-year average ROTCE¹ outperformance over the
last 10 years
The Firm's 3-yr average ROTCE has been in the top
quartile relative to our PSU peers for the last 5 years
and has ranked first in 4 of those 5 years
3-YEAR AVERAGE ROTCE OF THE FIRM RELATIVE
TO PSU PEERS OVER THE PAST 10 YEARS
JPM
PSU peers
70%
60%
50%
40%
30%
20%
10%
0%
Th
<6%
6-12%
LL
> 18%
For additional information and footnotes, please see slide 15
12-15% 15-18%
ROTCE Range
JPMORGAN CHASE & CO.
ASSESSING THE RIGOR OF ROTCE HURDLES
The CMDC calibrated the upper ROTCE goal of
the 2022 PSUs, representing exceptional
financial performance over the 3-year
performance period, at 18% or more; and the
lower ROTCE threshold, representing weak
financial performance over the same period, at
below 6%
. Of the 3-year performance periods for the Firm
and our PSU peers in the last 10 years, only
once have our PSU peers achieved ROTCE of
18%, demonstrating the rigor of our upper PSU
goal
• Our PSU peers have collectively reported 3-year
average ROTCE of <6% for 35% of the time
during that period, demonstrating the rigor of our
lower absolute PSU threshold
STRONG CORRELATION TO TSR
5-Year Avg. TSR
There is a strong correlation between long-term
operating performance, as represented by ROTCE, and
shareholder returns, as represented by TSR
. After considering the merits of ROTCE, TSR and other
performance measures, the CMDC chose to maintain
ROTCE as the most appropriate and comprehensive
metric for the 2022 PSU award
The CMDC believes ROTCE is still the most appropriate
metric as PSUs should incentivize strong, long-term
operating performance, which is more directly influenced
by management
FIRM AND PSU PEERS COMBINED 5-YEAR AVERAGE
TSR PERFORMANCE BY ROTCE QUARTILE (2017-2021)
130%
90%
50%
10%
-30%
Bottom
(2% avg.
ROTCE)
I JPMC is
here
il
Second
(13% avg.
ROTCE)
Third
(8% avg.
ROTCE)
5-Year Avg. ROTCE Quartile
Top
(15% avg.
ROTCE)
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