This excerpt taken from the PNC DEF 14A filed Mar 19, 2009.
The Committee approves PNCs compensation philosophy and supervises the compensation program for executive officers. We design our compensation program to attract, motivate, retain and reward the executives who are crucial to the success of our business.
The Committee believes that compensation should reflect performance and should be fair, competitive and reasonable in light of a persons responsibilities and experience. The Committee believes that the best way to achieve our principles and objectives is by providing a mix of compensation programs.
We want pay to vary according to performance. Our executives receive a significant amount of variable pay, and our incentives focus on long-term and short-term performance, as well as progress in furthering the goals of our strategic plan. We want the interests of our executives to align with the interests of our shareholders.
The details of our compensation program and how the Committee made its decisions are discussed in detail in the Compensation Decisions section of this CD&A beginning on page 51.