J.P.Morgan Shareholder Engagement Presentation Deck slide image

J.P.Morgan Shareholder Engagement Presentation Deck

B Executive Compensation Our disciplined pay for performance framework holistically assesses performance to determine total compensation and pay mix 1 2 The Firm's Business Principles and strategic framework form the basis of how OC members determine their annual strategic priorities against which their performance and compensation are evaluated -50% weighting on "the what" Business Results A Performance, based on the four broad assessment dimensions Business Principles Strategic Framework Risk, Controls & Conduct Governance For additional information and footnotes, please see slide 15 -50% weighting on "the how" Client Customer / Stakeholder B Value of the position to the organization and shareholders over time (i.e., "value of seat") Environmental & Social Considerations of ESG-related factors are embedded in the qualitative performance dimensions that comprise responsible leadership, thoughtful governance and sustainability. For total compensation (pay level), the CMDC evaluates various pay scenarios in light of the following considerations to inform their judgment: JPMORGAN CHASE & CO. Teamwork & Leadership Human Capital C The example they set for others by acting with integrity and strengthening the Firm's culture D External talent market (i.e., market data) 3 4 Cash Fixed Variable PSUS Once the CMDC determines total compensation, it then establishes the appropriate variable pay mix between an annual cash award and long-term equity, including PSUs and RSUS Salary Cash Award period CEO RSUS Grants based on 2022 performance PSUS The CMDC aligns compensation with long-term shareholder value using equity compensation with long vesting periods and additional holding periods NEOS1 15% 40% RSUS 0% 30% Total Compensation Fixed portion of total pay that enables us to attract and retain talent • Only fixed source of cash compensation • Provides a competitive annual cash award opportunity • Payout determined and awarded in the year following the performance year Represents less than half of variable compensation 85% 30% • RSUS serve as a strong retention tool ● PSUs reinforce accountability through objective targets based on absolute and relative ROTCE ● PSU goals are the same for the entire award term PSU payout of 0-150% is settled in shares 2023 2024 Post grant vesting and performance periods 2025 50% 50% Payout Payout Performance Period 0% - 150% payout based on ROTCE 2026 Our pay-for-performance compensation program is designed to align the long-term interests of our employees with those of our shareholders by emphasizing sustained value and reinforcing personal accountability 2027 2-year hold post-vesting Shares available in 2028 6
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