Company: USB-PA
Filing Date: 2025-03-05
Form Type: DEF 14A
Source: 0001104659-25-020883
Chunk: 45

Company: US BANCORP \DE\
Filing Date: 2025-03-05
Form: DEF 14A
Chunk 45
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 Banking group that she led until May 2024. Additional information on the calculation of the 2024 Business Line Result, based on adjusted pretax income results, for each NEO who is a current executive is described below. ▶ Each of the Corporate Result and the Business Line Result is multiplied by 50% and then added together to arrive at the Formulaic Bonus Funding Percentagefor each NEO. ▶ The Committee performs a Qualitative Reviewof the Formulaic Bonus Funding Percentage, which includes a holistic assessment of performance on key strategic priorities, as described below. The results of the Committee’s assessment of these additional performance factors allows the Committee to adjust the formulaic bonus calculation by up to 25% (either positively or negatively) to create greater alignment with overall organizational performance if appropriate.

| ​ | U.S. Bancorp 2025 Proxy Statement | ​ | ​ | 45 | ​ |

TABLE OF CONTENTS Compensation discussion and analysis 2024 Corporate Result: The Corporate Result was calculated as follows: ▶ The target level of EPS set by the Committee for 2024 was $3.88, as adjusted for notable items. ▶ The company reported EPS results of $3.79, which was adjusted (1) upward by $0.19 for purposes of the Corporate Result to account for notable items, including merger and integration charges related to the MUFG Union Bank acquisition, FDIC special assessment charges and charges related to lease impairments and operational efficiency actions, and certain notable items that the Committee deemed appropriate and (2) downward by $0.15 for loan loss reserve variation as described below. ▶ The resulting adjusted EPS value used to calculate the Corporate Result was $3.83. ▶ The Corporate Result of 97.2% was the outcome after applying the leverage factor to the percentage difference between target and adjusted EPS results. Funding and Payout of Corporate Result For purposes of computing the Corporate Result used in the Formulaic Bonus Funding Percentage, the Committee adjusts actual reported EPS to (i) remove the impact of any variation in our loan loss reserve build or release on an after-tax basis, while including net charge-offs to capture actual credit losses experienced and (ii) normalize any notable items that impacted EPS during the performance year. The Committee established its approach to adjusting for variation in our loan loss reserve in 2020 in connection with our adoption of the Current Expected Credit Losses (CECL) accounting standard in January 2020. Our adoption of CECL creates the potential for significant accounting volatility and uncertainty with