Summary
PNC Financial Services Group, Inc. (PNC) filed an 8-K report on April 14, 2009, detailing adjustments to its executive compensation structure related to incentive performance units. The primary focus of this filing is the modification of the peer group used for evaluating executive performance and the subsequent revision of the payout schedules for previously granted 2007 and 2008 incentive performance units. These adjustments were made in response to the significant reshaping of the financial industry and PNC's own growth. The peer group, used to benchmark the company's earnings per share (EPS) growth and return on average common shareholders' equity (ROCE), has been expanded from 11 to 13 companies. This change necessitates an update to the payout percentages tied to PNC's performance ranking within the peer group, particularly for the remaining performance periods of the 2007 and 2008 incentive grants.
Key Highlights
- 1PNC adjusted its executive compensation payout schedules for 2007 and 2008 incentive performance units.
- 2The peer group used for performance evaluation was expanded from 11 to 13 companies.
- 3This expansion reflects industry changes and PNC's growth.
- 4The payout schedule was revised to account for the larger peer group, affecting the 2007 (final year) and 2008 (second year) performance periods.
- 5The median payout for median performance remains at 100%.
- 6Payouts for performance above the median are adjusted upwards, and payouts below the median are adjusted downwards in 20% increments.
- 7An additional 0% payout percentage was approved due to the larger peer group.