Company: ORLY
Filing Date: 2025-03-31
Form Type: DEF 14A
Source: 0000898173-25-000017
Chunk: 11

Company: O REILLY AUTOMOTIVE INC
Filing Date: 2025-03-31
Form: DEF 14A
Chunk 11
---
 O’REILLY AUTOMOTIVE, INC.2025PROXY STATEMENT​
| ​ | ​                                 |
| ​ | PROPOSAL 5 – SHAREHOLDER PROPOSAL |

The Company’s Statement in Opposition to Proposal 5: The Board recommends a vote AGAINST proposal 5 , as the Board believes the actions requested by the proponent are unnecessary and not in the best interests of the Company or its shareholders. The Company has already adopted a comprehensive “no-fault” clawback policy that complies with applicable laws and regulations. The Board is dedicated to maintaining and enhancing a culture that is focused on integrity and accountability while tying compensation to the Company’s performance. The Board, following a recommendation by the Human Capital and Compensation Committee, proactively adopted an incentive compensation clawback policy in 2014. In 2022, the SEC adopted final rules implementing the incentive-based compensation recovery provisions of the Dodd-Frank Act, leading to new Nasdaq listing standards regarding recovery of erroneously awarded compensation in the event of an accounting restatement. In 2023, the Company reviewed and amended and restated its incentive compensation clawback policy (as so amended and restated, the “Clawback Policy”) to comply with these new requirements, and to be consistent with best corporate governance practices. The Clawback Policy includes a mandatory recovery element applicable to our current and former Section 16 officers, requiring recovery of erroneously awarded compensation in the event of an accounting restatement on a “no fault” basis. Said otherwise, the Clawback Policy applies irrespective of any personal culpability. In addition, under the Clawback Policy, if the Board or the Human Capital and Compensation Committee determines that any current or former NEO engaged in fraud or willful misconduct that contributed to an obligation to restate the Company’s financial statements, then the Board or the Human Capital and Compensation Committee may seek recovery or forfeiture of all or a portion of any Additional Compensation awarded to such person over a three-year lookback period. Accordingly, the Company already has a comprehensive “no fault” clawback policy that protects shareholders’ interests, promotes accountability and complies with applicable laws and regulations. SEC rules and Nasdaq listing standards already require extensive disclosures regarding the Clawback Policy and the recovery of erroneously awarded compensation. SEC rules and Nasdaq listing standards require the Company to file the Clawback Policy as an exhibit to its Annual Reports on Form 10-K, and to make detailed disclosures on how the Clawback Policy is implemented. For example, if a mandatory