Updated 11.11.2009

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Detailed Scorecard



Summary: Board Effectiveness at U.S. Bancorp can be improved. A few concerns within the Internal Control Environment also need to be addressed.


U.S. Bancorp has recently repaid money that it borrowed under TARP. As per the company's website, starting December 31, 2009, funds held in non-interest-bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee Program, but will be insured up to $250,000 under the FDIC's general deposit insurance rules.


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Is the Board equipped to provide effective and Independent oversight?

  1. Immediate relatives of Senior Management or directors have been employed by the company.

  2. 5 directors are directors of 3 public companies including this one. We believe that being an executive officer and director of one company is a full time job and taking on additional directorships can be a difficult commitment to fulfill.

  3. Being a CEO of another company is a full time job. Taking on additional responsibility as an Audit Committee member of another public company may not let the CEO concentrate on either of these responsibilities. One of the members of the Audit Committee, Douglas Baker Jr., is the CEO of Ecolab Inc.

  4. Although directors sitting on the Risk Management Committee bring a rich and varied experience to the Board, it appears from the biographies provided by the company that 4 out of 6 Risk Management committee members seem to have experience unrelated to either the company's primary line of business or financial risk management.

  5. According to the proxy statement, there is no approval or ratification process for related person transactions, only a review process.


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Detailed Scorecard


Board Size: 13

Board of Directors Compensation($): $90,000- Annual retainer; Each non-employee director was granted restricted stock units with a grant date value of $130,000 calculated in accordance with FAS 123R. The restricted stock units were were fully vested at the time of grant.

Total CO2 emissions from energy consumption(metric tons): 2008- Not known; 2007- 449,361

Amount received in Government Bailout($): $6.5 billion

Amount received in Government Bailout repaid($): Yes

Total CEO compensation for 2008($): $4.93 million

Chief Risk Officer: Richard J. Hidy

Tenure of Chief Risk Officer in this position: Richard J. Hidy has held the position of Chief Risk Officer at U.S. Bancorp since 2005.


Changes in Chief Risk Officer over the past 2 years**: None

** Why do we look at ‘Changes in Chief Risk Officer’?  Companies, where we observe quick changes to senior risk positions (in case of companies in the finance industry) are high on our ‘watch’ list.