Capital One 1997 Annual Report Download - page 8

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salute them for the time and talent they are investing to make
their communities better places to live and work.
The caliber of our associates is just one reason we are bullish
on Capital One. Our information technology is without peer. The
organization we have built over the last ten years excels at innova-
tion. We have an increasingly strong consumer franchise and an
expanding portfolio of highly profitable products. Financially, our
house is in excellent order.The flexibility inherent in our
information-based strategy allows us to develop opportunities in
multiple industries and around the world. Given these strengths,
we have every reason to believe that Capital One will continue to
be one of the nation’s outstanding growth companies.
Sincerely,
Richard D. Fairbank
Chairman and
Chief Executive Officer
Nigel W. Morris
President and
Chief Operating Officer
next three annual cash bonuses for stock options. The options for
us and our top executives do not vest unless the stock price rises
to $84 by December 2000, a compound annual gain of 20% from
the date these options were granted. Fifty-eight more managers
will forgo cash bonuses in exchange for options that vest in three
years. Management responded enthusiastically to the offer, with
95% electing to take part. Details of the compensation plan can
be found on page 49, but the salient point is this: senior manage-
ment, highly confident about the future of Capital One, is on the
same side of the net as every other stockholder.
Knowing that big achievements often have small beginnings, we
are increasing Capital One’s civic involvements and charitable con-
tributions in the communities where we do business. Most of our
efforts to date have gone into helping children at risk by fighting
hunger, building affordable housing and improving education. In
1997, for example, we gave more than half a million dollars for the
opening of Capital One Kids Cafes in Washington D.C., Richmond,
Fredericksburg,Tampa and Dallas/ Fort Worth. Sponsored by the
Second Harvest National Food Bank Network, Kids Cafes give
school-age children a safe place to go after school, a hot meal and
help with their homework. In addition to the financial support we
have provided, we are leveraging our human resources to increase
the effectiveness of our participation. On their own, many of
Capital One’s associates are deeply involved in civic affairs. We
Our new compensation plan
puts management and stockholders
on the same side of the net.
PAGE 6