U.S. Bancorp (USB, Financial) has announced a significant leadership transition with the election of Gunjan Kedia as the new President and Chief Executive Officer, effective April 15, 2025. This decision was made during a Board of Directors meeting held on January 28, 2025. Ms. Kedia, who has been serving as President since May 2024, will also join the Board and its Executive Committee immediately.
Ms. Kedia brings a wealth of experience to her new role, having previously served as Vice Chair of Wealth, Corporate, Commercial & Institutional Banking from June 2023 to May 2024, and as Vice Chair of Wealth Management and Investment Services from December 2016 to June 2023. Her leadership is expected to drive U.S. Bancorp's strategic initiatives and enhance shareholder value.
Andrew Cecere, the current Chairman and CEO, will transition to the role of Executive Chairman, continuing his service on the Board. Mr. Cecere has been at the helm as CEO since April 2017 and Chairman since April 2018, guiding the company through significant growth and transformation.
While Ms. Kedia's base salary and target annual cash incentive award are yet to be determined, she will receive an annual long-term incentive award valued at $10 million, effective February 27, 2025. This award will consist of 60% performance-based restricted stock units and 40% restricted stock units, aligning executive interests with long-term shareholder goals. The performance-based units will be contingent on achieving specific return on tangible common equity (ROTCE) targets and total shareholder return (TSR) relative to peers over a three-year period.
U.S. Bancorp's executive compensation program details, including ROTCE, a non-GAAP financial measure, are available in the company's 2024 proxy statement. The terms of Mr. Cecere's compensation as Executive Chairman are yet to be finalized.
Throughout 2024, U.S. Bancorp and its subsidiaries engaged in standard business transactions with Ms. Kedia and her family, adhering to customary terms and conditions, ensuring no preferential treatment or increased risk.
This leadership transition marks a new chapter for U.S. Bancorp, as it continues to focus on delivering value to its shareholders and maintaining its position as a leading financial institution.
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