Company: USB-PA
Filing Date: 2025-03-05
Form Type: DEF 14A
Source: 0001104659-25-020883
Chunk: 54

Company: US BANCORP \DE\
Filing Date: 2025-03-05
Form: DEF 14A
Chunk 54
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 PRSU performance matrix The target ROTCE level selected by the Committee for the three-year performance period is based on the ROTCE target guidance publicly communicated by the company at its 2024 Investor Day. The Committee also established a sliding scale of ROTCE achieved relative to the ROTCE of our financial peer group. In connection with its determination to change the performance metrics for the 2025 PRSU design, the Committee evaluated the financial peer group used for the 2024 PRSU awards and determined that it continued to be appropriate. The Committee believes that the 2025 PRSU earn-out structure continues to provide an important balance between rewarding the achievement of absolute performance goals and strong relative performance and sets maximum, target and minimum performance thresholds relative to our financial peer group that are sufficiently rigorous compared to the company’s ROTCE outlook over the next three years, and taking into account differences in our diversified business mix relative to peers. The ROTCE performance matrix provides that performance above the median of peers will increase the payout otherwise earned based on our absolute ROTCE result, while performance below the median of peers will reduce the award payout. The company’s absolute and relative ROTCE results for each of the three years within the performance period will be applied to the performance matrix to produce a percentage of target PRSUs results for that year using straight-line interpolation. At the end of the performance period, the percentage results for the three years will be averaged to determine the percentage of target PRSUs, with that percentage adjusted up or down 15% by application of TSR Modifier Factor which is determined based on the company’s peer group TSR ranking for the performance period. The final number of PRSUs earned and eligible to vest upon the third anniversary of the grant date will be determined by multiplying the percentage of target PRSUs by the TSR Modifier Factor, and then multiplying the result by the target PRSU award number.

| ​ | 52 | ​ | ​ | U.S. Bancorp 2025 Proxy Statement | ​ |

TABLE OF CONTENTS Compensation discussion and analysis

For 2025 awards, the Committee approved PRSU awards with the following ROTCE performance matrix and relative TSR modifier calculated based on the trailing 20-trading day average closing price for our common stock and the financial peer group over the performance period:

| ​ | ​                                                | ROTCE performance matrix for awards granted in 2025 (performance period: 2025-2027) |   |   |     |                                        |   |   |      |                                            |   |   |