Company: USB-PA
Filing Date: 2025-03-05
Form Type: DEF 14A
Source: 0001104659-25-020883
Chunk: 48

Company: US BANCORP \DE\
Filing Date: 2025-03-05
Form: DEF 14A
Chunk 48
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% of our other NEOs’ target total direct compensation consisted of equity awards. Following its approval by shareholders at our 2024 annual meeting held on April 16, 2024, the Committee grants equity awards to executive officers under the U.S. Bancorp 2024 Stock Incentive Plan. Prior to that, equity awards to our executive officers were granted under the U.S. Bancorp 2015 Stock Incentive Plan. In 2024, 60% of the value of each executive officer’s long-term incentive award was granted in the form of PRSUs that will cliff vest (if earned) on the third anniversary of the grant date, following a three-year performance period, and 40% was granted in the form of RSUs that vest ratably over three years from the date of grant. Cash dividends on unvested PRSUs accrue during the performance period but are only paid at vesting on shares earned, if any, by the executives. The mix of performance-based and time-based equity awards, with the mix more heavily weighted toward performance-based equity, is designed to motivate achievement of financial objectives while encouraging retention and stock ownership.

| ​ | 48 | ​ | ​ | U.S. Bancorp 2025 Proxy Statement | ​ |

TABLE OF CONTENTS Compensation discussion and analysis

Setting the value of the equity awards Each year in January, the Committee determines the dollar value of the long-term incentive awards to be granted to the executive officers, with the grants being made on a pre-determined date in February or March. In setting each year’s award amounts, the Committee considers the relative market position of the awards and the total compensation for each executive, the proportion of each executive’s total direct compensation to be delivered as a long-term incentive award, internal pay equity, executive performance and changes in responsibility, retention, and corporate performance. 2024 equity value actions: In January 2024, the Committee increased the value of the long-term incentive awards granted to the NEOs in 2024 to align the NEOs’ total compensation more closely with the opportunities available to executives in similar roles at companies in our peer group relative to our size and, for Mr. Dolan, changes in the scope of his leadership role in the organization during 2024. On May 3, 2024, the Committee awarded Ms. Kedia an additional long-term incentive award in connection with her promotion to the role of President, valued at $1,500,000 as of the grant