What is the purpose of these performance unit grants?

The performance unit grants are intended to incentivize senior officers by linking a portion of their compensation to PNC's corporate performance over a three-year period (2008-2010). Payouts are contingent on meeting specific corporate performance goals.

When will the payout for these grants be determined?

The payout determination will occur in early 2011, after the end of the performance period on December 31, 2010. The Compensation Committee will assess PNC's performance against the approved corporate goals.

Are the grants guaranteed to result in a payout?

No, the grants are not guaranteed. A payout will only occur if PNC achieves its corporate performance goals for the specified period. The Compensation Committee also retains the ability to reduce any potential payouts.

What is the difference between a 'share unit' and a dollar amount in this context?

The grants are denominated in 'share units,' meaning the target value is tied to a number of PNC shares. The final payout, if any, will be determined as a percentage of these target share units, and the actual value would then depend on the then-current market value of PNC shares or a cash equivalent, subject to performance conditions.

PNC 8-K: Leadership Changes

Summary

PNC Financial Services Group, Inc. filed an 8-K on January 21, 2008, reporting on incentive award grants made on January 15, 2008. The Personnel and Compensation Committee of the Board of Directors granted performance unit awards to certain senior officers under the 2006 Incentive Award Plan. These grants are designed to align executive compensation with corporate performance over a three-year period, from January 1, 2008, to December 31, 2010. Investors should note that these performance units are denominated in shares and require PNC to achieve specific corporate performance goals before any payout is made. The Committee retains discretion to adjust or reduce these payouts. The filing provides the target number of share units granted to each of the five named executive officers, including the Principal Executive Officer, James E. Rohr, who received 40,000 target share units.

Key Highlights

1PNC granted incentive performance unit awards to senior officers on January 15, 2008.
2Awards are made under the shareholder-approved 2006 Incentive Award Plan.
3Performance period for these grants is from January 1, 2008, to December 31, 2010.
4Payouts are contingent on PNC achieving corporate performance goals.
5Grants are denominated in shares and payouts are expressed as a percentage of target.
6The Compensation Committee has the ability to reduce payouts.
7Specific target share unit grants are detailed for five named executive officers.

PNC FINANCIAL SERVICES GROUP, INC. 8-K Report, Executive Changes (Jan 22, 2008)

Summary

Key Highlights

Frequently Asked Questions