Company: USB-PA
Filing Date: 2025-03-05
Form Type: DEF 14A
Source: 0001104659-25-020883
Chunk: 43

Company: US BANCORP \DE\
Filing Date: 2025-03-05
Form: DEF 14A
Chunk 43
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 $ |  2,037,500 | ​ | ​ |
| ​ | Shailesh M. Kotwal | ​ | ​ | ​                              | ​ | 200%  | ​ | ​ | ​ | ​                              | ​ | 225%  | ​ | ​ | ​ | ​                          | $ |  1,800,000 | ​ | ​ |
| ​ | Timothy A. Welsh   | ​ | ​ | ​                              | ​ | 200%  | ​ | ​ | ​ | ​                              | ​ | 225%  | ​ | ​ | ​ | ​                          | $ |  1,800,000 | ​ | ​ |

1. Target value effective September 1, 2023, in connection with Mr. Stern’s appointment as Chief Financial Officer. 2. The Committee increased Ms. Kedia’s target value from 225% (or $1,800,000) to 250% (or $2,500,000), effective May 5, 2024, in connection with her promotion to the role of President. Her prorated target award percentage for 2024 was 243%. Calculating the Final Bonus Funding Percentage The Bonus Funding Percentageis calculated using two evenly weighted factors: ▶ the Corporate Result, which is based on EPS performance for 2024, as adjusted; and ▶ the Business Line Result, which is based on applicable business line or corporate pretax income performance for the executive officer. The Committee believes that EPS and pretax income targets are appropriate performance metrics for the executive officers’ annual cash incentive awards for the following reasons: ▶ EPS is a common metric used by investors to evaluate the profitability of a company, showing the earnings (net income) we make on each outstanding share of common stock; ▶ a focus on EPS supports alignment of the interests of the executive officers with those of shareholders; ▶ EPS captures elements of corporate performance that are beyond those of the individual operating business lines, such as corporate funding policies and the management and use of capital; ▶ the pretax income targets are the fundamental drivers of the company’s revenues and income before taxes; and ▶ the EPS and pretax income targets are aligned with annual financial plan targets, which the Board and management have assessed for achievability; accordingly, the targets provide incentives to take appropriate amounts of risk to achieve those goals. In addition, both EPS and pretax income are used across the organization for cash bonus payout calculations, and the Committee believes