Company: TFC
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0001193125-25-055156
Chunk: 65

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 65
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 and vesting features that extend over several years. Additionally, LTIP awards are based on our performance over a three-year period, encouraging our named executives to focus on long-term performance, rather than just annual results, and further reducing risk-taking that is likely to produce only short-term benefits and allowing sufficient time for risk outcomes to emerge. Performance Measures that Adjust for Risk Under our incentive programs, we use performance metrics that closely correlate to shareholder return. Similarly, our incentive programs include measures that adjust for risk, including the use of the executive risk outcomes assessment for short-term incentive compensation. Responsible Equity Grant Practices Generally, the timing of our regular annual equity awards is determined months in advance of the actual grants in order to coincide with the regularly scheduled February meetings of the Board and the Committee. The grant date is established when the grants and all key terms are approved by the Board or the Committee, as the case may be. For the 2024 PSU and RSU awards, the Committee used the closing price of our common stock on the grant date to determine the number of PSU and RSU awards that were granted. In addition, the 2022 Incentive Plan includes prohibitions on the repricing of stock options without shareholder approval. We are required to recognize the expense of all share-based awards (such as PSUs and RSUs) in our income statement over the award’s minimum required service period. Executive Risk Outcomes Assessment / Risk Adjustments We utilize an executive risk outcomes assessment process, which the Committee may use to adjust, if necessary, the short-term incentive compensation of each named executive. In March 2024, the Committee amended the Executive Risk Outcomes Assessment Policy to enhance the process, focusing on strengthening the linkage between risk management and effectiveness and the overall performance of executive and senior leaders. The executive risk outcomes assessment now includes an independent qualitative risk management effectiveness assessment supported by data and conducted by the Chief Risk Officer and Business Unit Chief Risk Officers as a key component of the performance management process. In addition to the CEO, the executive risk outcomes assessment is now applicable to both direct reports to the CEO and their direct reports, a population that has the most direct impact on Truist’s risk and control environment. In conducting the qualitative assessments of risk management effectiveness, the Chief Risk Officer and Business Unit Chief Risk Officers evaluate factors based on impact to the risk profile of the enterprise and relevant areas of management control and influence. The Risk Committee reviews and approves the assessment before the outcomes are presented to the Committee. The executive risk outcomes assessment:

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