Andrew Cecere serves as chairman, president and chief executive of Minneapolis-based U.S. Bancorp, parent company of U.S. Bank. He saw his total compensation decrease 19% from the $17.3 million he received in 2022. His annual cash incentive was down from the prior year, and he earned less from performance-based restricted stock awards for achievements over the previous three years.
U.S. Bank CEO’s compensation drops 19%, but is still nearly $14M
More than half of Andrew Cecere’s compensation in 2023 came from restricted stock awards that vested last year.
The Minnesota Star Tribune
March 8, 2024 at 4:49PM
- Total compensation: $13,983,026 for the year ended Dec. 31.
- Salary: $1,350,000.
- Nonequity incentive pay: $3,794,175.
- Other compensation: $62,570.
- Value realized on vesting shares: $8,776,281.
- Median employee pay: $88,624
- CEO pay ratio: 259-1
- Total 2023 shareholder return: 4.7%
Note: In December 2022, U.S. Bancorp completed an $8 billion acquisition of MUFG Union Bank that was first announced in September of 2021. The company spent much of 2023 integrating its largest deal in years, a deal that significantly expanded U.S. Bancorp’s presence in key West Coast markets.
Over the Memorial Day weekend, the company converted nearly 1.2 million consumers at the 300 branch locations acquired into U.S. Bank operations.
But 2023 was a difficult year for banking companies as a whole, and U.S. Bancorp’s performance on key financial measures for its annual incentive bonus program was less than the year before, leading to smaller payouts. Cecere earned 80% of targeted annual bonuses for the year, adding up to $3.8 million, down 21% from his bonus in 2022.
Earnings figures were adjusted for the merger and integration costs related to the MUFG acquisition and the compensation committee of U.S. Bancorp does reserve some discretion to make a qualitative assessment of the financial performance and alter payouts. The committee did a qualitative review but elected not to alter the payouts but did note the “the meaningful positive impacts of the successful MUFG Union Bank.”
The biggest portion of Cecere’s compensation came from restricted stock awards that were granted in 2021 but vested in 2023. The measure came in at 128% of target, and Cecere made $8.8 million from those awards. That was down the $10.3 million worth of awards that vested in the year before.
Cecere also did not exercise any of his other stock options in 2023, when he saw gains of $808,561 the year before.
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