EFTA02437378.pdf

To: jeevacationftmaitcomijeevacationellgmail.com] From: Jes Staley Sent Sun 9/27/2009 7:28:32 PM Subject: Fw: DRAFT: Steve and Jes note Fyi From: Kristin C Lemkau To: Jes Staley Sent: Sun Sep 27 15:19:27 2009 Subject: DRAFT: Steve and Jes note Let me know what you think of this with reworked comp language -- it may still be too strong. Jamie's note will outline the key changes, so I think this one should be aimed at reassuring people. Message from Steve Black and Jes Staley: Following Jamie's note, we wanted to send a note to IB employees on the organization changes. First, we would like to extend our enormous appreciation for Bill Winters and everything he has done over his extraordinary 25-year career. Bill helped build the investment bank into the leadership position it has today. In particular, he was instrumental in developing our leading derivatives franchise and navigating us through the market turmoil over the past two years. We know he will be very successful with whatever he decides to do. As Jamie stated, Steve will take on the role of Executive Chairman of the Investment Bank. Jcs will become CEO of the Investment Bank and the members of the Investment Bank Management Committee will report to Jes. We will have first ports of call, with Jes taking the lead on the Markets businesses and Risk, and Steve taking the lead on Global Investment Banking. Steve will take the lead on 2009 compensation. He is in the best position to evaluate performance for the year, which has been outstanding. We have discussed our views on the IB's compensation practices and are aligned on them, along with Jamie, the Operating Committee and the Board. If strong performance continues, we will pay competitively for the success we have had, and as always, will differentiate based on individual performance. EFTA_R1_01510188 EFTA02437378 Change is never easy, but we can promise you that we are committed to working together to make this transition a role model for the industry. The Investment Bank is in the best competitive position than at any time in our history, and we are completely focused on doing everything we can to secure and grow that lead. We have a special opportunity to do what no other investment bank has ever achieved and to make this firm the leading player in our industry for years to come. As we work through this transition, that will be our chief goal driving all decisions. Most important, we both know that what most gives us our competitive edge is the outstanding people we have. We know you have all worked extremely hard over the past few years to reach this leadership position. This transition will take place thoughtfully and smoothly over the next 16 months. Let us focus on the transition and we ask all of you to focus on business as usual, so we can deliver outstanding performance through year-end. Steve Jes EFTA_R1_01510189 EFTA02437379