Company: GGG
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052581
Chunk: 30

Company: GRACO INC
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 30
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 the equity awards granted to each executive officer is determined by dividing the long-term incentive award value by a projected Black-Scholes value based on assumptions used for financial accounting purposes. 22 Graco Inc. 2025 Proxy Statement

Refer to the discussions of each compensation element below, as well as the “Compensation of Individual Named Executive Officers” section below, for specific information on how this benchmarking process applied to specific compensation decisions for our NEOs for 2024. Our Company’s Peer Group The Company’s compensation peer group (the “Graco Peer Group”) was reviewed and analyzed with Willis Towers Watson in September 2022 to ensure the group is large enough to maintain reliable market outcomes and is appropriately aligned with the Company in terms of industry, size, life cycle stage, labor market, and revenue and market capitalization characteristics. At that time, Willis Towers Watson did not recommend any changes to the Graco Peer Group, and the MOCC determined not to make any changes to the Graco Peer Group, believing it achieved the foregoing objectives. Willis Towers Watson validated the ongoing viability of the Graco Peer Group in September 2024. The following table lists the companies that were in the Graco Peer Group when the MOCC set 2024 compensation levels for the executive officers, and includes financial and headcount data for the Company and the median of the Graco Peer Group:

| Graco Peer Group                 |     |                                       |     |                     |          |     |                                    |     |           |       |
| Albany International Corp. (AIN) |     |    Franklin Electric Co., Inc. (FELE) |     |                     |          |     |         Snap-on Incorporated (SNA) |     |           |       |
| Allegion plc (ALLE)              |     |                IDEX Corporation (IEX) |     |                     |          |     |              Tennant Company (TNC) |     |           |       |
| A. O. Smith Corporation (AOS)    |     |                        ITT Inc. (ITT) |     |                     |          |     |    The Middleby Corporation (MIDD) |     |           |       |
| Barnes Group Inc. (B)            |     |                 Kennametal Inc. (KMT) |     |                     |          |     |             The Toro Company (TTC) |     |           |       |
| Chart Industries, Inc. (GTLS)    |     |            Nordson Corporation (NDSN