This excerpt taken from the PNC 8-K filed Feb 13, 2009.
2006 Performance Units Payouts
As we have previously reported, the committee granted incentive performance unit award opportunities under PNCs 2006 Incentive Award Plan in January 2006 to certain of our senior officers, including our CEO and other named executive officers, and made an additional performance units grant to Mr. Demchak in February 2006. These grants provide an opportunity for the executive to receive a payout after the end of a three-year performance period based on our performance relative to our peers in the case of the incentive performance units and based on the performance of our A&L unit compared to benchmark in the case of Mr. Demchaks additional performance unit grant.
Following the end of the three-year performance period on December 31, 2008, the committee certified the levels of performance achieved for both programs and determined the final awards.
In the case of the 2006 incentive performance units, the performance period covered the three full years 2006, 2007 and 2008, and measured PNCs earnings per share growth (EPS growth) and return on average common shareholders equity (ROCE) performance, each adjusted as defined in the grants, relative to the comparable performance of its peers in each of those three years. The maximum award that the committee may grant is a percentage of the share units awarded (as adjusted for phantom dividends during the performance period), and that payout percentage is based on the average of six numbers: the percentage assigned by the committee-approved schedules to PNCs rank relative to its peers (based on the peer group approved by the committee for each of the years, which had 11 members including PNC each year) for each of the two corporate performance factors EPS growth and ROCE for each of the three years as follows: