Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Shareholder Meeting (April 2011)
22 slides from Jp Morgan Chase &'s shareholder meeting presentation, Apr 20, 2011
Slide 1: Schedule 14A
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant x Filed by a Party other than the Registrant ¨ Check the appropriate box: ¨ Preliminary Proxy
Slide 2: Filing Party and Date Filed
(3) Filing Party: (4) Date Filed:
Slide 3: JPMorgan Chase Proxy Discussion Topics: 2011 Proxy
* * * * * * JPM OR G AN CH ASE PRO X Y D ISCUSS I O N TO P ICS 2011 Proxy April 2011
Slide 4: Topics
Topics Page JPMorgan Chase overview 1 Executive compensation 7 Governance 15 1
Slide 5: Performance summary
JPMorgan Chase overview Performance summary Excellent client franchises and businesses Excellent franchises Each standalone business has a top 1, 2 or 3 position Unparalleled client relationships in 140+ countries Culture of innovation; new products and programs launched during crisis Continued inve
Slide 6: JPM's fundamentals remain extremely strong
JPMorgan Chase overview JPM’s fundamentals remain extremely strong $ in millions, excluding EPS $O/(U) FY2009 FY2010 FY2009 Revenue (FTE)¹ $108,647 $104,842 ($3,805) Credit Costs¹ 38,458 16,639 (21,819) Expense 52,352 61,196 8,844 Reported Net Income $11,728 $17,370 $5,642 Net Income Applicable to C
Slide 7: Drivers of historical growth 2005-2010
JPMorgan Chase overview Drivers of historical growth 2005-2010 Select Key Stats ($ in billions, except where noted) 2005 2010 CAGR IB Fees ($mm) $4,096 $6,186 8.6% 1,2 Global IB Fees market share 6.9% 7.8% IB Fixed Income Markets ($mm) 7,570 1 15,025 14.7% Equity Markets ($mm) 1,998 4,763 19.0% Reta
Slide 8: Market share gains translate into significant earnings power
JPMorgan Chase overview Market share gains translate into significant earnings power Pretax pre-provision profit ($ in billions) 2005-2010 2005 2010 CAGR Investment Bank1 $5,018 $8,952 12% Retail Financial Services 6,245 13,892 17% Card Services 10,367 11,366 2% Commercial Banking 1,632 3,841 19% Tr
Slide 9: Stock and book value performance
JPMorgan Chase overview Stock and book value performance Stock Total Return Analysis if You Became a Shareholder of the Respective Firms at December 31, 2000 Bank One Chase J.P. Morgan S&P 500 10-Year Performance: Compounded Annual Gain 7.0% 2.5% 2.7% 1.4% Overall Gain 97.4 28.1 30.1 15.1 This chart
Slide 10: Topics
Topics Page JPMorgan Chase overview 1 Executive compensation 7 Governance 15 7
Slide 11: Compensation philosophy
Executive compensation Compensation philosophy Board of Directors provides independent oversight of our compensation policies and practices Disciplined compensation processes involve a series of reviews and assessments by successive levels of management, the Operating Committee, the CEO, the Compens
Slide 12: Pay linked to performance
Executive compensation Pay linked to performance Compensation structure is designed to reward sustained performance over multiple years Compensation decisions in 2010 for our senior leaders were driven by return on investments based on balanced risk measures and long-term value creation for the Firm
Slide 13: Strict limits or prohibition on executive perquisites and special benefits
Executive compensation Strict limits or prohibition on executive perquisites and special benefits There are no golden parachutes or special severance plans No golden parachutes for any executives No employment contracts other than occasional exceptions upon hire. No change in control agreements No s
Slide 14: Long-Term Incentive Plan proposal
Executive compensation Long-Term Incentive Plan proposal JPMorgan Chase is seeking shareholder approval to amend the Plan by: Authorizing 240 million additional shares and extending the term to May 31, 2015 Including carryover, a total of 315 million shares Proposed amount and tenor is consistent wi
Slide 15: Long-Term Incentive Plan proposal
Executive compensation Long-Term Incentive Plan proposal RSUs are used in lieu of cash Economic impact to the Firm of stock versus cash is comparable Share count expected to be neutralized through the buy-back program – This has effectively the same result as if we had used cash We would use less de
Slide 16: Equity based awards
Executive compensation Equity based awards Equity-based awards are a key component of the Firm’s compensation Over the past five years, total grants of equity-based awards have ranged from 1.7% to 4.0% of average outstanding shares Grants of restricted stock and restricted stock units (RSUs) have ra
Slide 17: Equity plan grant history
Executive compensation Equity plan grant history (Shares in thousands) 2006 2007 2008 (1) 2009 2010 2011 (2) Option/SAR grants 15,229 21,446 9,341 24,821 20,949 14,631 Restricted stock/unit grants 44,553 47,608 85,890 131,145 80,142 55,211 Average fully diluted shares 3,516,100 3,445,300 3,521,800 3
Slide 18: Topics
Topics Page JPMorgan Chase overview 1 Executive compensation 7 Governance 15 15
Slide 19: Board leadership structure
Governance Board leadership structure Presiding Director annually appointed by and from the independent directors for one year term Board prefers “Presiding” to “Lead” to emphasize all directors share equally in responsibilities Presiding Director duties include: Presiding at Board meetings when the
Slide 20: Other practices
Governance Other practices Majority voting for directors Shareholder right to call special meetings Board oversight of risk management Risk Policy Committee approves risk appetite policy on behalf of Board Say on Pay The Board of Directors recommends an annual vote on executive compensation Sharehol
Slide 21: Notes on non-GAAP financial measures
Notes on non-GAAP financial measures 1. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. The Firm’s definition of managed basis starts with the
Slide 22: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks a
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