Form 4: JPMorgan Chase COO Daniel Pinto Awarded Performance Share Units

Daniel Pinto, President & COO of JPMorgan Chase, was awarded 104,524 Performance Share Units (PSUs) based on the firm's performance, which will vest in installments over the next five years.

Summary

• Daniel E. Pinto, President & COO of JPMorgan Chase & Co., was granted 104,524 Performance Share Units (PSUs) on March 19, 2024.
• These PSUs were earned based on JPMorgan Chase's performance against pre-established goals for the three-year period ending December 31, 2023.
• The PSUs are scheduled to vest in five equal installments annually, starting March 25, 2024, and ending March 25, 2028.
• Shares delivered upon vesting, after tax withholding, are subject to additional holding periods.
• The Board's Compensation & Management Development Committee (CMDC) certified the firm's performance and determined that the maximum amount of PSUs has been earned.
• The CMDC determined that no downward adjustment will be made to his payout on his qualitative performance during the performance period.

Sentiment

Score: 8

Explanation: The document reflects a positive outcome for Daniel Pinto and JPMorgan Chase, as the PSU award signifies strong performance and alignment of interests. The vesting schedule and holding periods promote long-term value creation.

Positives

• Daniel Pinto's PSU award reflects JPMorgan Chase's strong performance over the past three years.
• The CMDC's decision not to adjust the payout based on qualitative performance indicates satisfaction with Mr. Pinto's contributions.
• The vesting schedule provides a long-term incentive for Mr. Pinto to continue driving the firm's success.

Future Outlook

The PSUs will vest in five equal installments annually from March 25, 2024, to March 25, 2028, subject to continued employment and the terms of the PSU award.

Management Comments

• The Board's Compensation & Management Development Committee (CMDC) 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.
• The CMDC has determined that no downward adjustment will be made to his payout on his qualitative performance during the performance period.

Industry Context

Executive compensation in the financial services industry often includes performance-based equity awards to align management's interests with those of shareholders. This PSU award is consistent with that practice.

Comparison to Industry Standards

• Goldman Sachs and Morgan Stanley also utilize performance-based equity awards for their top executives.
• The vesting schedules and performance metrics are typically aligned with long-term strategic goals and shareholder value creation.
• The size of the award is commensurate with Mr. Pinto's role as President & COO and his contributions to the firm's performance.

Stakeholder Impact

• Shareholders may view the PSU award positively as it aligns management's interests with the firm's performance.
• Employees may see the award as a sign of the firm's success and a reflection of their collective efforts.

Next Steps

• The PSUs will vest in installments over the next five years.
• Shares will be delivered after applicable tax withholding.
• Shares delivered will be subject to additional holding periods.

Key Dates