Summary
JPMorgan Chase & Co. (JPM) has filed an 8-K report detailing the establishment of performance measures for executive compensation for the 2006 fiscal year. The Compensation & Management Development Committee has set specific operating financial metrics, including net income, fully diluted earnings per share, return on common equity, and revenue growth, as the basis for determining annual cash incentive awards, restricted stock/unit awards, and other performance-related compensation under the 2004 Key Executive Performance Plan (KEPP).
Key Highlights
- 1JPM's Compensation Committee has defined the performance metrics for 2006 executive compensation.
- 2The plan, the 2004 Key Executive Performance Plan (KEPP), ties executive pay to company performance.
- 3Key financial metrics established include Net Income, Fully Diluted Earnings Per Share, Return on Common Equity, and Revenue Growth.
- 4Non-financial performance areas such as merger integration, leadership development, corporate culture, and diversity will also be evaluated.
- 5This filing provides transparency on how executive compensation is structured and linked to business objectives for the current year.