Company: TFC
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0001193125-25-055156
Chunk: 67

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 67
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 that Truist concludes, or reasonably should have concluded, that Truist is required to prepare a financial restatement, and (ii) the date on which a legally authorized body causes Truist to prepare a financial restatement. Under the Recoupment Policy, Truist may not indemnify any designated executive for any losses in connection with the recovery of erroneously awarded compensation. Truist’s obligation to recover erroneously awarded compensation is not dependent on if or when the restated financial statements are filed or any fault of the designated executive for the accounting errors leading to a restatement. In addition, our 2022 Incentive Plan, which is the plan pursuant to which we grant all of our AIP, PSU, LTIP, and RSU awards, and related award agreements contain broad language regarding clawbacks and make all awards under the 2022 Incentive Plan subject to recoupment, forfeiture, or reduction to the extent determined by the Committee as necessary to comply with applicable law or Truist’s policies. Our award agreements also allow the Committee to adjust the terms and conditions of the awards in recognition of certain events, including material restatement of our financial statements, to prevent dilution or enlargement of benefits intended to be made under the applicable award. In 2024, the Committee enhanced its Incentive Compensation Policy to provide that the Committee may cancel, adjust, or clawback all or any part of any awards under the 2022 Incentive Plan (i) in the event of certain teammate misconduct, such as sales practices violations, a material misrepresentation by the teammate, conduct that causes material financial or reputational harm to Truist, or improperly failing to identify, raise, or assess, in a timely manner and as reasonably expected, issues or concerns with respect to risks material to Truist; (ii) if the award was based on materially inaccurate performance metrics, and the teammate was responsible for the inaccuracy; or (iii) for any other reason stated in other applicable policies, plans, or agreements. Our Board believes that the current structure of Truist’s incentive compensation recoupment practices is appropriate, effective, provides a balanced approach to risk management and properly aligns the interests of our executive officers and shareholders. Share Ownership Requirements The Committee believes that executive officers, including the named executives, should accumulate meaningful equity stakes in Truist over time to further align their economic interests with the interests of shareholders, thereby promoting our objective of increasing shareholder value. We have robust stock