Company: GGG
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052581
Chunk: 35

Company: GRACO INC
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 35
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 have been highly effective by aligning management’s interests with our shareholders’ interests and creating significant value for our shareholders over the long term. Under the terms of the Graco Inc. Amended and Restated 2019 Stock Incentive Plan (the “2019 Plan”), the MOCC must approve all stock option grants to executive officers. In February 2024, executive officers were awarded non-qualifiedstock options with an exercise price equal to the fair market value of our common stock on the grant date, defined in the 2019 Plan as the last sale price of the stock on the day immediately preceding the grant date. Each option has a 10-yearterm and becomes exercisable in equal installments over four years, beginning with the first anniversary of the grant date. Additionally, the 2019 Plan prohibits the repricing of stock options. In 2024, the MOCC granted the following stock option awards to our NEOs under the 2019 Plan:

| Named Executive Officer |     | Stock Option Award (Number of Shares) |         |     | Grant Date Fair Value ($) |           |
| Mark W. Sheahan         |     |                                       | 189,910 |     |                           | 5,499,794 |
| David M. Lowe           |     |                                       |  32,800 |     |                           |   949,888 |
| Dale D. Johnson         |     |                                       |  17,260 |     |                           |   499,850 |
| Peter J. O’Shea         |     |                                       |  17,260 |     |                           |   499,850 |
| Ronita Banerjee         |     |                                       |  17,260 |     |                           |   499,850 |

Compensation of Individual Named Executive Officers Mark W. Sheahan President and Chief Executive Officer Mr. Sheahan’s base salary as of December 2023 was below the median of the Graco Peer Group. In December 2023, the MOCC approved a base salary increase of 4% to $1,025,000 for 2024 based on Mr. Sheahan’s relative position in the market and individual performance. The increase was in line with the Market Increase Projection. Based on 2024 corporate Net Sales and corporate Incentive EPS performance, Mr. Sheahan received a $122,740 bonus payment under the Incentive Bonus Plan. Mr. Sheahan’s bonus payout represented 12% of his target