City National (CYN)

Objectives of our Executive Compensation Program

        Our compensation program reflects the following objectives which apply to our named executives in the same manner as all our colleagues:

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"Pay for Performance:" Our compensation program is designed to support our business and financial strategies by emphasizing performance-based pay that determines payouts based on our colleagues' level of achievement. Each year our compensation program is calibrated to support the achievement of financial and other business goals of the Company and encourage appropriate decision-making and effective risk management by our colleagues. We reward colleagues for their contribution to the achievement of these financial and strategic goals by applying our performance-based guidelines which strive to assess individual, business unit and company-wide collective performance against our goals in a fair, objective and consistent manner.



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"Act like Stockholders:" Our compensation program is designed to align our colleagues' interests with the interests of our stockholders. We include equity awards in our compensation package to encourage our colleagues to think and act like our stockholders.



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"Invest in Colleagues:" A key corporate priority is to attract, retain, motivate and develop our colleagues. Our compensation program is designed to provide a competitive total compensation opportunity through base salary, annual incentives and equity incentives. We recognize that investing in our colleagues is essential to delivering the financial solutions and quality services that are critical to attain our goals and increase stockholder value.

Objectives of our Executive Compensation Program

        Our compensation program reflects the following objectives which apply to our named executive officers in the same manner as all our colleagues:

•

"Pay for Performance." Our compensation program is designed to support our business and financial strategies by emphasizing at-risk performance-based pay. Each year our compensation program is calibrated to support the achievement of financial and other business goals of the Company. We reward colleagues for their contribution to the achievement of these financial and strategic goals by applying our performance-based guidelines which strive to assess individual, business unit and company-wide collective performance against our goals in a fair, objective and consistent manner.



•

"Act like Stockholders." Our compensation program is designed to align our colleagues' interests with the interests of our stockholders. We include equity awards in our compensation package to encourage our colleagues to think and act like our stockholders.



•

"Invest in Colleagues." A key corporate priority is to attract, retain, motivate, and develop our colleagues. Our compensation program is designed to provide a competitive total compensation opportunity through base salary, annual incentives and equity incentives. We recognize that

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investing in our colleagues is essential to delivering the financial solutions and quality services that are critical to attaining our goals and increasing stockholder value.