Company: AOS
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001193125-25-037641
Chunk: 38

Company: SMITH A O CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 38
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 target range in special circumstances to the extent it believes such an action is appropriate based on these variables and the expected future contributions of an individual executive to our company.

For 2025, we compared ourselves to the market median of other companies with revenues of $3.85 billion, which represents our reported revenues in 2023.

30A. O. Smith Corporation

Executive Compensation Consideration of Stockholder Vote on Executive Compensation At our 2024 Annual Meeting, our stockholders approved the compensation of our named executive officers by approximately 97% of the votes cast, which was consistent with previous years. The PCC considered this vote when setting 2025 compensation levels for our named executive officers and other executives and, as discussed below, made very few changes to the 2025 program. Role of Executives in Compensation Decisions The PCC annually reviews the chairman and chief executive officer performance and makes recommendations regarding his compensation for consideration by the full Board. The chairman and chief executive officer is not present during discussions regarding his compensation, and he does not play any role in determining his own compensation. As it deems appropriate, the PCC utilizes the WTW compensation data and directs the senior vice president – human resources and public affairs to prepare computations for its consideration. With respect to other executives, the chairman and chief executive officer annually reviews performance and makes compensation recommendations to the PCC. The chairman and chief executive officer reviews compensation data provided by WTW, consults with the senior vice president – human resources and public affairs and considers the individual factors listed above before making his recommendations. The PCC can exercise its discretion to modify any recommended compensation to such executives. Compensation Elements The PCC takes a balanced approach to executive compensation. Our executive compensation package is comprised of several key components which are designed to work together to provide executives with a total compensation package that is competitive with industry norms. For 2024, total compensation included:

| • |     | Annual Base Salary |

| • |     | Incentives |

| • |     | Short-Term – annual incentive bonus |

| • |     | Long-Term – restricted stock units, performance cash and performance stock |

| • |     | Benefits |

| • |     | Executive retirement plan and 401(k) savings plan |

| • |     | Executive life insurance and post-retirement life insurance (grandfathered for executives serving prior to 2019 only) |

| • |     | Perquisite allowance (grandfathered for executives serving prior to 2016 only) |