Summary
This 8-K filing by Capital One Financial Corporation (COF) on February 5, 2008, details compensation decisions for its Named Executive Officers for the upcoming 2008 fiscal year. The Independent Members of the Board and the Compensation Committee approved compensation structures that reflect modest increases over 2007. Specifically, total target compensation for these officers saw an increase of approximately 3% to 5% over 2007 levels, subject to performance. The compensation components include base salary, annual bonus, and long-term incentives. Base salaries received a modest increase of 0% to 5%. The annual bonus and long-term incentive awards are tied to specific company and individual performance metrics, with a broader performance range for bonuses (0-200% of target for company, 0-150% for individual) and payouts for long-term incentives ranging from 0% to 125% of target. This filing provides transparency into executive compensation strategy in anticipation of the 2008 performance period.
Key Highlights
- 1Capital One's Board approved 2008 executive compensation for Named Executive Officers (excluding CEO).
- 2Total target compensation for Named Executive Officers increased by approximately 3% to 5% compared to 2007.
- 3Base salary increases for Named Executive Officers ranged from 0% to approximately 5%.
- 42008 Annual Bonus awards will be based on company performance metrics (operating expenses, revenue growth, charge-off levels) and individual performance.
- 5Company performance component for annual bonuses can range from 0% to 200% of target.
- 6Individual performance component for annual bonuses can range from 0% to 150% of target.
- 7Long-Term Incentive awards for 2008 will be split 50% restricted stock and 50% other vehicles to be determined later, with payouts based on individual performance ranging from 0% to 125% of target.