Company: FITBI
Filing Date: 2025-03-04
Form Type: DEF 14A
Source: 0001193125-25-045653
Chunk: 39

Company: FIFTH THIRD BANCORP
Filing Date: 2025-03-04
Form: DEF 14A
Chunk 39
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 threshold and target, and target and maximum, being interpolated. The overall funding amount represents the sum of the weighted average score for each of the Bancorp funding metrics. The maximum payout for any executive is limited to 200% of the individual target. The Committee may use final results of the funding modifiers to increase or decrease the pool funding amount by 20 funding points, not to exceed 200% for any executive. Performance Against VCP Goals. The Company delivered strong and consistent operating results in 2024. Many of these highlights are described on page 4. After adjusting for certain items described further below, the overall VCP funding was slightly above the stated targets. Consistent with our historical practice, the Company made reasonable adjustments in consideration of the financial effects of certain events not contemplated in the targets, which are referred to herein as the “2024 VCP Adjusted Actual.” Management and the Committee believe these adjustments are appropriate and ultimately provide incentives that reward performance that is actionable and sustainable.

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COMPENSATION DISCUSSION AND ANALYSIS In determining 2024 VCP Adjusted Actual performance under the Plan, the Committee reviewed certain items assessed annually for potential exclusion from the VCP calculation (where items could have the effect of increasing or decreasing funding). For the 2024 performance year, the annual adjustments, described further below, had a positive impact of $0.13 to earnings per share, four basis points to return on assets, and 1.7% to the efficiency ratio. The items the Committee evaluated and adjusted for are consistent with the historical approach including: gains or losses related to interchange litigation matters (including the valuation of the Visa total return swap and ongoing Mastercard litigation), the Federal Deposit Insurance Corporation (“FDIC”) special assessment; neutralizing the impact of the allowance for credit losses (“ACL”); and other modest adjustments related to items such as one time impact of severance actions, securities gains or losses related to ordinary course of business, excluding the impact of non-qualified deferred compensation valuation changes, and other items which are largely offsetting. The impact of these adjustments to the results are noted below.

| Adjustment:                                               | EPS | Performance Impact: |    |      |   | ROA |     |       |    | Efficiency Ratio 
 (FTE)(1)         |     |       |
|:----------------------------------------------------------|:----|:--------------------|:---|-----:|:--|:----|:----|------:|:---|:-----------------|:----|