Date: December 18, 1996 Source: Wall Street Journal, B4 Headline: "Stock Options to Be Given to 69,000 Staff Members" Summary Over the next 3 years, Chase Manhattan Corp. will grant 150 stock options per year to each of its 65,000 full-time and 4,000 part-time employees. The first option grant, made yesterday, was priced at $86.38 and cannot be exercised until the stock price equals or exceeds $110.00 for 5 consecutive days. CPM Observations Chase will be awarding under this program 10,350,000 shares per year, equivalent to 2.35% of outstanding shares. The Bank's stock price must appreciate 27.3% for options to be exercisable. Chase stock has appreciated nearly 50% since its merger with Chemical Bank on March 31, 1996. At the price threshold required for exercise, the option gain per employee will be $3,543, equivalent to 14.2% of salary for an employee earning $25,000 per year and 2.4% of salary for a $150,000 employee. Index: alleeso.001 Recently in "Performance Bytes"... August 22, 1997 "Management Pay -- Unintended Consequences" The Economist, August 22, 1997 [strategy.002] March 7, 1997 "Performance Stock Options" Congressional Record, January 21, 1997 [alleeso.004] February 24, 1997 "Most EDS Employees To Get Stock Options..." Wall Street Journal, February 24, 1997 [alleeso.003] January 29, 1997 "American Air Pilots Asked to Agree to Arbitration" Wall Street Journal, January 29, 1997 [union.001] January 24, 1997 "A Tale of Two Compensation Strategies: (Eastman Kodak & AlliedSignal)" Fortune, January 13, 1997 [strategy.001] January 8, 1997 "Small Concerns Are More Likely to Pay Directors in Stock Than Large Firms" Wall Street Journal, January 8, 1997 [bdcomp.001] December 31, 1996 California Qualified Stock Options (CQSOs) State of California, Secretary of State (AB 3194) [alleeso.002] December 27, 1996 "All about EVA" CFO Magazine, November, 1996 [perfmeas.001] December 18, 1996 "Stock Options to Be Given to 69,000 Staff Members" (Chase Manhattan Corp.) Wall Street Journal, December 18, 1996 [alleeso.001]