Company: AOS
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001193125-25-037641
Chunk: 56

Company: SMITH A O CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 56
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 18, 2024, and the fair market value for his grants on that date was $86.58, based upon the average of the highest and lowest price on the date of the grant. No dividends are paid on unvested performance stock. The actual number of stock units vesting is dependent upon company performance on a water usage goal over the three-year vesting period as more fully explained under “Compensation Discussion and Analysis – Long-Term Incentive Compensation.” |

| 2 | Shows the number of restricted stock units granted to each named executive officer in 2024 under the Combined Incentive Compensation Plan. Restricted stock units vest on February 12, 2027, except in the event of dismissal or voluntary resignation prior to vesting, if not retirement eligible. The grant date fair value of these awards was $81.02 for the February 13, 2024, grant per restricted stock unit, based upon the average of the highest and lowest price on the date of grant. Mr. Shafer joined the company on March 18, 2024, and the fair market value for his grants on that date was $86.58, based upon the average of the highest and lowest price on the date of the grant. Mr. Shafer’s restricted stock units grant includes 17,325 units representing his regular annual grant and an additional 23,100 units to account for equity awards he forfeited to join A. O. Smith. Dividends on restricted stock units are credited to the named executive officer’s account in the A. O. Smith Non-qualified Deferred Compensation Plan. |

2025 Proxy Statement 43

Executive Compensation

| 3 | The value of the restricted stock units and performance stock are the aggregate grant date fair value of restricted stock units and performance stock granted during a year calculated in accordance with FASB ASC Topic 718. |

| 5 | Amounts reflect the target and maximum awards that each named executive officer can earn under the Combined Incentive Compensation Plan as performance cash units for the period 2024-2026. Performance cash units have a value of $100 per unit at time of grant. The actual value of performance cash units is dependent upon ROIC performance over the three-year vesting period, as more fully explained under “Compensation Discussion and Analysis – Long-Term Incentive Compensation.” |

44 A. O. Smith Corporation

Executive Compensation Outstanding Equity Awards at December 31, 2024 The table below reflects all outstanding equity