Company: AOS
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001193125-25-037641
Chunk: 72

Company: SMITH A O CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 72
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IT)              |
| Return on Invested Capital (ROIC)                      |
| Net Sales                                              |
| Return on Equity                                       |
| Performance Earnings before Interest and Taxes (PEBIT) |

54 A. O. Smith Corporation

Pay Versus Performance Disclosure The graph below shows a five-year comparison of the cumulative shareholder return on our Common Stock with the cumulative total return of the Standard & Poor’s (S&P) 500 Index, S&P 500 Select Industrials Index, which are published indices. The following chart provides a graphical representation of the Compensation Actually Paid to our CEO and other named executive officers versus the company’s f ive-yearcumulative TSR. 2025 Proxy Statement 55 Pay Versus Performance Disclosure The following chart provides a graphical representation of the Compensation Actually Paid to our CEO and other named executive officers versus the peer group (S&P Industrials Index) five-year cumulative TSR. The following chart provides a graphical representation of the Compensation Actually Paid to our CEO and other named executive officers versus the company’s Net Income. 56 A. O. Smith Corporation Pay Versus Performance Disclosure The following chart provides a graphical representation of the Compensation Actually Paid to our CEO and other named executive officers versus the company’s selected measure, EBIT. The EBIT amount for 2023 has been corrected from a miscalculated amount reflected in the corresponding disclosure in last year’s Definitive Proxy Statement on Schedule 14A filed on February 29, 2024. 2025 Proxy Statement 57

PAY RATIO DISCLOSURE Our philosophy is to pay our employees competitively with similar positions in the applicable labor market. We follow this approach worldwide, whether it be an executive level position or hourly job at a foreign plant. As such, we typically benchmark by position to the applicable labor market every year, and adjust compensation to match the applicable market. By doing so, we believe we maintain a high-quality, more stable workforce. The compensation we paid to the median employee identified below was benchmarked in accordance with this process to verify competitive compensation. As a result of rules the SEC adopted under the Dodd-Frank Act, we are providing the following disclosure about the ratio of the annual total compensation of our chairman and chief executive officer to the median annual total compensation of our employees. For the year ended December 31, 2024:

| • |     | the median of the annual total compensation of all employees of our company was reasonably estimated to be $50,022; |

| • |     | the annual