Company: KMX
Filing Date: 2025-05-08
Form Type: DEF 14A
Source: 0001170010-25-000073
Chunk: 19

Company: CARMAX INC
Filing Date: 2025-05-08
Form: DEF 14A
Chunk 19
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 2024 proxy statement and implemented in fiscal year 2025, as described below. The Committee will continue to consider the outcome of future say-on-pay votes when making executive compensation decisions.

Our executive compensation programs have historically received strong shareholder support (average approximately 97% of votes cast from 2018 to 2022). At the 2023 annual meeting of shareholders, our shareholders approved our executive compensation program, with approximately 71% of the votes cast in favor of the program. While this result indicated significant shareholder support for our executive compensation programs and policies, it was lower than our desired and historical levels of support. Accordingly, we conducted focused shareholder outreach (both before and after the 2023 annual meeting of shareholders) to better understand shareholder perspectives about our executive compensation program. Our shareholder conversations generally indicated support for the Company’s strategy and for our executive compensation program and practices. However, a minority of shareholders (and broader stakeholders) supported modifications to the structure of our executive compensation program.

In response to shareholder and stakeholder feedback, the Committee implemented meaningful changes to the structure of our executive compensation program effective for fiscal year 2025. These changes included: (i) a return to a three-year Performance Stock Unit (“PSU”) performance measurement period, which began with our fiscal 2025 PSUs (awarded in May 2024), which was a shift from one-year performance measurement periods established each year; (ii) the use of diversified metrics in the short- and long-term incentive programs, which is reflected in our fiscal 2025 Annual Incentive Bonus goals and our fiscal 2025 PSU goals; and (iii) the restructuring of the fiscal 2025 long-term incentive awards so that performance-based

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PSUs comprised 50% of the fair value of our fiscal 2025 long-term incentive awards and stock options comprised the remaining 50% (awarded in May 2024).

SUMMARY OF FISCAL 2025 COMPENSATION ACTIONS FOR OUR NAMED EXECUTIVE OFFICERS

The following chart summarizes the key compensation elements for fiscal 2025:

| Compensation Element    |     | Committee                                                                                                                                                                                                                                                                                                                                        
 Determinations                                                                                                                                                                                                                                                                                                                                   |     | Why We Made These Determinations                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Base Salary             |     | Base salary increases ranged from 3% to 9% (however, no increase to CEO base salary).                                                                                                                                                                                                                                                            |     | The 3% increase to the base salaries of Mr. Mayor-Mora,