Updated 11.12.2009

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Detailed Scorecard



Summary: Close relationships with many Board members. Board Effectiveness also reduced due to presence of Board Executive committee and CEO on Board Risk Committee. Complete information in certain key areas is also not disclosed.


PNC Financial Services is a borrower under the TARP program to the extent of $7.5 billion. No report has been publicly filed on a regular basis on the usage of these funds.


Many of the directors have either themselves or through companies that they represent entered into transactions with the company. Although the proxy states that these have been made in the ordinary course of business yet InvesGuard flags these items to indicate the extent to which directors and the company are closely bound together. Refer to the tab on Internal Control Environment and click on 'Expand All' to see the details.


Subscribed members can view a detailed analysis of individual sections by clicking on the tabs above.

Is the Board equipped to provide effective and Independent oversight?

  1. The CEO is a member of the Board's Executive committee. The executive committee has been granted broad powers. Presence of such an executive has the potential to reduce the effectiveness of the Board as a whole.

  2. The CEO is on the board Risk Committee. There are no public disclosures as to how many Board Risk committee meetings were held without the management director present. Board Effectiveness and Independence could be affected due to the CEO's continued presence on the Risk Committee of the board.

Does the CEO appear to have adequate time and attention for the affairs of the company?

  1. The CEO is also on the board of 3 other public company boards. All these positions require considerable time and effort and may decrease CEO effectiveness.

Does the company follow good compensation practices?

  1. The compensation committee has changed the perquisite policy of the company. Effective January 1, 2009, if perquisites exceeded $10,000 for any year, the executive is asked to reimburse PNC for the amount over $10,000, if legally permissible. The Committee also formalized a policy that prohibits executive officers from receiving tax “gross-ups” on any perquisites.

Does the company disclose it's Social and Environmental impact related metrics?

  1. The company has a very low level of disclosures as far as its social and environmental metrics are concerned. There is no disclosure on carbon emissions, recyling efforts or waste efforts. Please refer to the tab of Social and Environmental Impact.



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Detailed Scorecard


Board Size: 17

Board of Directors Compensation ($): Cash- $45,000

Deferred stock units- 1,493 deferred stock units for 2008.

Annual grant of PNC common stock- $5005

Total CO2 emissions (metric tons): 2008-not known; 2007- not known

Amount received in Government Bailout($): $7,579,200,000

Amount received in Government Bailout repaid($): No

Total CEO compensation for 2008($): $14,618,789

Chief Risk Officer: Michael J. Hannon

Tenure of Chief Risk Officer in this position: Michael J. Hannon was appointed Chief Risk Officer in February 2009.

Changes in Chief Risk Officer over the past 2 years**: One. Prior to Michael Hannon, Thomas Whitford served as PNC’s Chief Risk Officer from 2002 to 2007.

** Why do we look at ‘Changes in Chief Risk Officer’? Companies, where we observe quick changes to senior risk positions (in case of companies in the finance industry) are high on our ‘watch’ list.