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

Ashley Bacon, Chief Risk Officer of JPMorgan Chase, settled Performance Share Units (PSUs) for common stock on March 25, 2024, and disposed of shares to cover tax obligations.

Summary

• On March 25, 2024, Ashley Bacon, the Chief Risk Officer of JPMorgan Chase & Co., settled Performance Share Units (PSUs) and acquired 41,266.4763 shares of JPMC common stock.
• These shares were acquired upon settlement of a PSU award granted on January 19, 2021, for the three-year performance period ended December 31, 2023.
• Following the transaction, Bacon directly owns 243,359.4763 shares of JPMC common stock.
• Additionally, 20,922.4763 shares were disposed of at a price of $195.65 to cover tax obligations.
• After this disposal, Bacon directly owns 222,437 shares of JPMC common stock.
• The shares delivered upon settlement of the PSUs must be held for an additional two-year period, resulting in a total combined vesting and holding period of five years from the date of grant.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, indicating that performance goals were met. The sentiment is neutral to slightly positive as it reflects the achievement of performance targets.

Positives

• The settlement of PSUs indicates that JPMorgan Chase met its pre-established performance goals for the three-year performance period ended December 31, 2023.

Future Outlook

The shares acquired through PSU settlement are subject to a two-year holding period, indicating a continued alignment of the executive's interests with the company's long-term performance.

Industry Context

Form 4 filings are a routine part of executive compensation and provide transparency into the holdings and transactions of company insiders. The settlement of PSUs is a common practice in the financial industry to incentivize and reward executives based on company performance.

Comparison to Industry Standards

• Performance Share Units (PSUs) are a common form of executive compensation in the financial services industry, used by companies like Goldman Sachs, Morgan Stanley, and Citigroup.
• The vesting and holding periods associated with PSUs, such as the five-year period mentioned in the document, are generally in line with industry standards to ensure long-term alignment of executive interests with shareholder value.
• Disclosure of these transactions through SEC Form 4 filings is a standard regulatory requirement for all publicly traded companies in the United States.

Stakeholder Impact

• The settlement of PSUs and subsequent increase in share ownership by a key executive can positively influence shareholder confidence.
• The disposal of shares to cover tax obligations has a negligible impact on other stakeholders.

Key Dates