Company: AOS
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001193125-25-037641
Chunk: 50

Company: SMITH A O CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 50
---
Executive Compensation allowance. Messrs. Wheeler, Lauber and Stern are grandfathered and receive perquisite allowances; Messrs. Shafer and O’Brien are not eligible for perquisite allowances. Mr. Petrarca was eligible for a perquisite allowance until his retirement in September 2024. Perquisite allowances for the named executive officers are:

| Executive         |     | Annual Allowance |        |
|:------------------|:----|:-----------------|-------:|
| Kevin J. Wheeler  |     | $                | 40,000 |
| Charles T. Lauber |     |                  | 35,000 |
| Stephen M. Shafer |     |                  |      0 |
| James F. Stern    |     |                  | 40,000 |
| Stephen D O’Brien |     |                  |      0 |

In addition to the grandfathered perquisite allowance, executives may receive executive physicals, reimbursement for spousal travel to Board or executive meetings, including, on an infrequent basis, spousal travel on the corporate aircraft for such purpose, occasional tickets to sporting events and other items of incidental value. Severance Plan The named executive officers participate in the A. O. Smith Senior Leadership Severance Plan (the “Plan”), which protects executives financially in the event of employment termination in circumstances identified in the Plan, including a change in control of our company. These protections help to ensure that executives will remain focused on managing our company in the event of a pending change in control or other circumstances. Furthermore, this Plan provides a more attractive compensation package when recruiting key talent. Lastly, instead of negotiating individual separation arrangements upon a termination, the PCC can ensure consistent and equitable treatment for all executives. The Plan provides each executive with a cash severance (represented as a multiple of their annual cash compensation), medical benefit continuation and outplacement services. Additionally, vesting of long-term incentive awards is accelerated in certain cases. To be covered by the Plan, an executive must sign a noncompete, non-solicitation,assignment of inventions and confidentiality agreement. To receive these benefits, an executive must sign a release from future claims against our company. The Plan also provides for enhanced cash severance benefits upon a change in control, as discussed below. We do not have any individual employment agreements with named executive officers. Tax Considerations The PCC considers its primary goal to be the design of compensation strategies that further the economic interests of our company and stockholders. Under Section 162(m) of