U.S. Bancorp CEO's pay dropped 40% in 2020
March 10, 2021 at 4:36PM
Total compensation: $8,214,045 for the year ended Dec. 31
Salary: $1,200,000
Nonequity incentive pay: $1,946,160
Other compensation: $61,256
Value realized on vesting shares: $5,006,629
Median employee pay: $76,932
CEO pay ratio: 218-1
Total 2020 shareholder return: -17.9%
Note: Cecere's total realized compensation decreased 40% from 2019, mainly because he didn't exercise stock options in 2020. In the previous three years, Cecere's average gain from option exercises was more than $6 million. Cecere also hasn't received new option awards since 2017.
Cecere's annual cash incentive pay decreased 28% from 2019 as U.S. Bancorp's corporate and business line results finished under targets for 2020.
The board of directors elected to reduce its equity award compensation by 33% in April 2020 to recognize the impacts of the COVID-19 pandemic on the company. According to U.S. Bancorp's proxy, the board took an active role in overseeing management's pandemic response. It did not adjust the annual incentive formulas for Cecere and other executives. That means, like Cecere, many executives at U.S. Bancorp experienced lower overall compensation in 2020.
Despite the challenges, U.S. Bancorp had a strong year in comparison to some in the banking industry, with the best return on average assets and second-best performance on return on average common equity among its peer group.
U.S. Bancorp also stated in its proxy that its 2021 annual meeting will be in a virtual-only format once again due to the pandemic.
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