Form 4: JPMorgan Chase Chief Risk Officer Acquires Performance Share Units

Ashley Bacon, Chief Risk Officer of JPMorgan Chase, reports the acquisition of performance share units (PSUs) convertible to common stock based on the firm's performance.

Summary

• Ashley Bacon, the Chief Risk Officer of JPMorgan Chase & Co., has reported the acquisition of 41,266.4763 Performance Share Units (PSUs) on March 19, 2024.
• These PSUs represent a contingent right to receive one share of JPMC common stock per unit upon vesting, based on the attainment of pre-established performance goals.
• The PSUs were earned based on the firm's performance over a three-year period ending December 31, 2023.
• The Board's Compensation & Management Development Committee certified that the maximum amount of the previously granted PSUs has been earned.
• The PSUs are expected to vest and settle in shares of common stock on March 25, 2024, which will be reported in a later Form 4 filing.
• Shares delivered after tax withholding must be held for an additional two-year period, resulting in a total vesting and holding period of five years from the grant date of January 19, 2021.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as it reflects the achievement of performance goals and alignment of executive incentives with shareholder value. There are no explicit negative indicators.

Positives

• The acquisition of PSUs indicates that JPMorgan Chase achieved its pre-established performance goals, as certified by the Board's Compensation & Management Development Committee.
• The vesting of PSUs into common stock aligns the executive's interests with those of the shareholders.

Future Outlook

The PSUs are expected to vest and settle in shares of common stock on March 25, 2024, which will be reported in a later Form 4 filing.

Management Comments

• The Board's Compensation & Management Development Committee has certified the Firm's absolute and relative performance against the pre-established performance goals for the performance period and has determined that the maximum amount of the previously granted PSUs has been earned.

Industry Context

This filing is a routine disclosure related to executive compensation and aligns with standard practices for publicly traded companies. The use of performance-based equity compensation is common in the financial services industry to incentivize executives to achieve specific performance targets.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among large financial institutions like Goldman Sachs, Morgan Stanley, and Citigroup.
• These companies often use similar metrics, such as return on equity (ROE) and total shareholder return (TSR), to determine the vesting of performance share units.
• The vesting and holding periods described in the document are also consistent with industry norms, which aim to align executive incentives with long-term shareholder value.

Stakeholder Impact

• Shareholders may view the vesting of PSUs positively, as it indicates that the company has met its performance goals.
• Employees may be motivated by the company's achievement of performance goals, which could lead to increased morale and productivity.

Next Steps

• The PSUs are expected to vest and settle in shares of common stock on March 25, 2024.
• A subsequent Form 4 filing will likely be made to report the vesting and settlement of the PSUs.

Key Dates