8-KLeadership ChangesExhibits & Filings

CAPITAL ONE FINANCIAL CORP 8-K Report, Executive Changes (Feb 6, 2026)

Filed February 6, 2026For Securities:COFCOF-PLCOF-PICOF-PKCOF-PNCOF-PJ

Summary

This 8-K filing from Capital One Financial Corporation (COF) details the approval of 2026 compensation plans and the finalization of 2025 incentive awards for its Chief Executive Officer, Richard D. Fairbank, and other Named Executive Officers. The compensation structure continues to emphasize performance-based pay, with a significant portion of executive compensation tied to the company's financial performance and relative shareholder returns over multi-year periods. The filing also introduces updated severance policies, including an Executive Officer Cash Severance Policy and an updated Executive Change of Control Severance Plan, aiming to align severance benefits with industry practices while requiring stockholder ratification for certain higher severance thresholds. Key for investors is the direct link between executive pay and company performance, particularly the multi-year performance periods for equity awards such as performance shares (PSUs). The structure for 2026 compensation mirrors the performance-oriented approach, with awards being "completely at-risk" and subject to future performance evaluations. The updated severance plans provide clarity on potential payouts in change-of-control or termination scenarios, with specific multiples of base salary and target bonus defined for different executive levels. These disclosures reinforce the company's commitment to aligning executive interests with those of shareholders through long-term incentives and a disciplined approach to severance.

Key Highlights

  • 1CEO Richard D. Fairbank's total 2025 compensation finalized at $40 million, comprising an initial RSU award and a substantial year-end incentive.
  • 22025 CEO year-end incentive includes $24.8 million in Performance Share Awards (PSAs) tied to three-year performance metrics (Growth of Shareholder Value and Adjusted ROTCE, plus relative TSR).
  • 32026 compensation plans for CEO and other Named Executive Officers continue to be heavily weighted towards performance-based and at-risk equity awards, with no cash salary for the CEO.
  • 4New Executive Officer Cash Severance Policy caps new cash severance benefits at 2.99 times Base Salary plus Target Bonus without stockholder ratification.
  • 5Updated Executive Change of Control Severance Plan provides severance multiples of 2.5x for CEO and 2x for other Named Executive Officers of Base Salary plus Target Bonus upon qualifying termination.
  • 6Amended and Restated Executive Severance Plan provides Named Executive Officers (excluding CEO) with lump sum cash payment of base salary plus target annual bonus upon involuntary termination due to restructuring or poor performance.
  • 7Compensation awards are structured with multi-year deferrals and performance periods, emphasizing long-term alignment with shareholder interests.

Frequently Asked Questions

For 2025, Mr. Fairbank's total compensation was finalized at $40 million, including a previously granted $2.5 million in RSUs and a $37.5 million year-end incentive. This incentive consists of $24.8 million in performance share awards tied to multi-year performance metrics, a $6.7 million deferred cash bonus, and $6.0 million in RSUs vesting in 2029. For 2026, his compensation plan includes a $2.5 million RSU grant vesting in 2029, with the potential for a year-end incentive award in early 2027 based on 2026 performance, which will also be at-risk and subject to a three-year performance period. His compensation remains entirely at-risk and does not include a cash salary.

The CEO Performance Shares are contingent on the company's performance over a three-year period. Approximately $22.1 million of these awards are tied to a combination of 'Common Dividends plus Growth of Tangible Book Value per share' (Growth of Shareholder Value) and 'Adjusted Return on Tangible Common Equity' (Adjusted ROTCE). An additional $2.7 million is based on Total Shareholder Return (TSR) relative to a peer group of banks (excluding custody banks) within the KBW Bank Sector index.

Capital One has adopted an Executive Officer Cash Severance Policy and an updated Executive Change of Control Severance Plan, both effective March 1, 2026. The Cash Severance Policy requires stockholder ratification for new cash severance benefits exceeding 2.99 times the sum of an executive's Base Salary plus Target Bonus. The Change of Control Severance Plan provides cash severance of 2.5 times (for the CEO) or 2 times (for other Named Executive Officers) the sum of Base Salary and Target Annual Bonus upon specific termination events during a change of control period. Additionally, an Amended and Restated Executive Severance Plan provides Named Executive Officers (excluding the CEO) with a lump sum cash payment equal to their base salary and target annual bonus upon certain involuntary terminations.

For 2026, the total target compensation for other Named Executive Officers ranges between $6.0 million and approximately $8.0 million. Approximately 20% will be paid as regular cash salary. Around 25% offers an opportunity for a cash incentive award in early 2027, based on 2026 company performance at the discretion of the committee. The remaining approximately 55% will be equity incentives, including restricted stock units and performance share awards, with payouts also discretionary and contingent on 2026 performance and a three-year performance period.