Company: GWW
Filing Date: 2025-02-20
Form Type: PRE 14A
Source: 0001104659-25-015730
Chunk: 63

Company: W.W. GRAINGER, INC.
Filing Date: 2025-02-20
Form: PRE 14A
Chunk 63
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 other grant-eligible employees to reduce short-term volatility between the value used to convert shares and the Company’s stock price value on the day of grant. The same 20-day average is used to calculate the number of shares underlying the Company’s annual equity grants to directors. 2024 NEO Long-Term Incentives Overview The long-term incentives provided to NEOs during 2024 are summarized as follows:

| ​ | Award                          | ​ | ​ | ​ | Weight as a Percentageof Total LTI |   |   |   |     | ​ | ​ | ​ | Vesting                                            | ​ | ​ | ​ | Performance Measure                                                                                                                                            | ​ |
| ​ | CEO                            | ​ | ​ | ​ | Other NEOs                         | ​ | ​ |   |     |   |   |   |                                                    |   |   |   |                                                                                                                                                                |   |
| ​ | Performance Share Units (PSUs) | ​ | ​ | ​ | 60%                                | ​ | ​ | ​ | 50% | ​ | ​ | ​ | Three-year cliff vesting contingent on performance | ​ | ​ | ​ | U.S. share gain,(1)(2) Endless Assortment daily sales growth,(2) and total Company adjusted operating margin performance,(2) with each metric equally weighted | ​ |
| ​ | Restricted Stock Units (RSUs)  | ​ | ​ | ​ | 40%                                | ​ | ​ | ​ | 50% | ​ | ​ | ​ | Three-year graded vesting                          | ​ | ​ | ​ | Long-term value is based on performance in stock price                                                                                                         | ​ |

(1) U.S. share gain is a relative metric which refers to the High-Touch Solutions—U.S. business daily, organic sales less estimated U.S. MRO market growth. (2) See Appendix B of this proxy statement for information regarding compensation and non-GAAP financial measures, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. As noted earlier, the Compensation Committee did not make any adjustments to its existing 2024 NEO long-term incentive program design from the program used in 2023. The Company regularly evaluates its long-term incentive program against its objective to provide appropriate incentives to drive long-term shareholder value creation, align management with the Company’s strategic initiatives and remain responsive to market practice. Performance Share Units (PSUs) The Company’s 2024 PSU program provides the NEOs and other executives with a