Company: USB-PA
Filing Date: 2025-03-05
Form Type: DEF 14A
Source: 0001104659-25-020883
Chunk: 44

Company: US BANCORP \DE\
Filing Date: 2025-03-05
Form: DEF 14A
Chunk 44
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 that using these measures in executive officer incentive award calculations supports alignment with their areas of responsibility.

| ​ | 44 | ​ | ​ | U.S. Bancorp 2025 Proxy Statement | ​ |

TABLE OF CONTENTS Compensation discussion and analysis Both the Corporate Result and Business Line Result are assessed relative to targets included in our company’s annual financial plan. The Board establishes these financial targets for each fiscal year with the intent that they represent challenging, yet achievable, goals. Under the AEIP, the Committee has the authority to adjust results to exclude the effect of certain events. The Final Bonus Funding Percentage is calculated as follows: ▶ Corporate Result:The percentage by which corporate EPS differs from the EPS target is multiplied by a leverage factor to magnify the positive or negative variation from the results, yielding the Corporate Result. A leverage factor of 2:1 is applied to corporate achievement of EPS goals between 80% and 120% of target. For any amount by which corporate achievement of EPS goals is less than 80% or more than 120%, the leverage factor is 1:1. ✓ The target level of EPS set by the Committee for 2024 was $3.88. The target EPS level is intended to reflect the core earnings of the company and, as such, excluded the impact of notable items. Additional information on the calculation of the 2024 Corporate Result, based on adjusted EPS results, is described below. ▶ Business Line Result:A payout component is calculated for each business line based on the percentage by which the business line’s pretax income varies from target, using the same leverage factor as is applied to corporate performance. For executives with leadership responsibilities for the entire company, including Messrs. Cecere, Dolan, and Stern, the Business Line Result is based on the weighted average of the pretax income results of all the company’s business lines. For executives who lead a revenue-producing group, including Mr. Kotwal, the Business Line Result is based on the weighted average pretax income results of the business lines within the group that the executive leads. In connection with her promotion to the role of President during 2024, Ms. Kedia’s Business Line Result for 2024 was determined based on a pro-rated combination of (1) the weighted average of the pretax income results of all the company’s business lines for the period Ms. Kedia held the role of President and (2) the weighted average pretax income results for the business lines within the Wealth, Corporate, Commercial and Institutional