Company: CLX
Filing Date: 2025-10-07
Form Type: DEF 14A
Source: 0001552781-25-000311
Chunk: 30

Company: CLOROX CO /DE/
Filing Date: 2025-10-07
Form: DEF 14A
Chunk 30
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 -10% | 0%     |
| Three-Year                          
 Economic Profit Growth              |        |           |             |        | 133%   |

(1)In accordance with predetermined criteria established by the MDCC at the time initial awards were approved, annual growth rates were adjusted for the impacts of the following Events (as defined in the 2022 PSU award agreements): our digital transformation, our streamlined operating model, termination of our pension plan, non-cash impairment charges in the Better Health VMS business, primary impacts of the FY24 cyberattack, divestiture of our Argentina and Better Health VMS businesses, and our ERP transition. The performance metric for PSUs granted in September 2024 (the 2024 PSUs), is EP during the performance period of July 2024 through June 2027 (fiscal years 2025 to 2027). The EP target for the first year of the performance period was set as a base dollar value, with an EP growth rate target set for the second and third years. Performance against target (whether dollar value or growth rate) will be measured for each year, generating three annual funding percentages. The three annual funding percentages will be averaged to determine the final payout percentage for the 2024 PSUs. The final overall payout percentage for the 2024 PSUs ranges from 0%, if the threshold EP value or growth target is not achieved, to a maximum of 200% of the target number of shares. Restricted stock units.RSUs align the interests of our NEOs with those of our shareholders because the value of RSUs increases or decreases as the price of Clorox stock changes. RSUs from annual awards vest in one-quarter increments over a four-year period, beginning one year from the date of grant. RSUs from off-cycle awards typically vest in one-third increments over a three-year period, beginning one year from the date of grant. Retirement Plans Our NEOs participate in the same tax-qualified retirement benefit programs available to all other U.S.-based employees, plus an executive-only plan. Our retirement plans are designed to provide replacement income upon retirement and to be competitive with programs offered by our peers. Because the IRC limits the benefit value that may be contributed to and paid from a tax-qualified retirement plan, Clorox also provides our executive officers, including our NEOs, with additional retirement benefits intended to restore amounts that would otherwise be payable under our tax-qualified retirement plans if the IRC did not have limits on includable compensation and maximum