Company: AOS
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001193125-25-037641
Chunk: 46

Company: SMITH A O CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 46
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% of the target value. Timing of Awards We generally award long-term incentive grants annually in February, shortly after we release earnings for the prior year, although such timing may change from year to year. The PCC also may consider and approve interim or mid-yeargrants, or grants made on another basis, from time to time based on business needs, changing compensation practices or other factors, at the discretion of the PCC. The chairman and chief executive officer has the authority to implement midyear equity grants as they relate to senior management employee promotions and new hires to align the employees as quickly as possible to stockholder interests and to make equity adjustments if circumstances warrant. This authority does not include midyear grants for executive officers. Neither the PCC nor the chairman and chief executive officer takes into account material nonpublic information in determining the timing and terms of equity-based awards, and we have not timed, nor do we intend to time, the disclosure of material nonpublic information for the purpose of affecting the value of executive compensation. Share Ownership Guidelines We have developed share ownership guidelines requiring minimum levels of Common Stock accumulation and ownership, depending on the executive’s position. Current ownership guidelines applicable to current named executive officers are as follows, based on the average stock price in the prior year:

| Executive          |     | Guideline (Multiple of salary) |
| Kevin J. Wheeler   |     |                              5 |
| Charles T. Lauber  |     |                              3 |
| Stephen M. Shafer  |     |                              3 |
| James F. Stern     |     |                              3 |
| Stephen D. O’Brien |     |                              3 |

We target these ownership guidelines to be competitive with comparable positions in the marketplace. They also are intended to align executive interests with those of our stockholders. The PCC periodically monitors ownership guidelines to ensure they are consistent with the market and makes adjustments, as appropriate. We expect 36 A. O. Smith Corporation

Executive Compensation

executives to achieve these ownership guidelines within a reasonable period of time after becoming an executive at our company. Once achieved, the level of ownership must be maintained. Including granted but unvested restricted stock units, all named executive officers with the exception of Mr. O’Brien are in compliance with the ownership guidelines. Mr. O’Brien is new to his role and is on track to meeting his share ownership guideline. Mr. Petrarca retired in September 2024 and is no longer subject to share ownership guidelines.

Consideration of Risk in Executive