This excerpt taken from the PNC DEF 14A filed Mar 28, 2008.
The table below summarizes the compensation that we provided to our named executive officers for 2007 and 2006, computed in accordance with SEC regulations. The equity-based compensation columns include the compensation expense we recognized in each year with respect to awards made in prior years.
This methodology means that an executive officer may ultimately realize a value from these awards that differs from the amounts shown on the table, depending on the value of the stock when the award vests or is exercised. The equity awards made in 2007, and their values at the time of grant, are presented in the Grants of Plan-Based Awards in 2007 table on page 59.
The amounts shown under Stock Awards, Option Awards, and Non-Equity Incentive Plan Compensation all contain a performance or incentive element. The ultimate value to employees of these elements of compensation depends on a combination of corporate and individual performance and the price of our stock. As the table shows, a majority of each named executive officers compensation includes a performance or incentive element.