Company: KMX
Filing Date: 2025-05-08
Form Type: DEF 14A
Source: 0001170010-25-000073
Chunk: 43

Company: CARMAX INC
Filing Date: 2025-05-08
Form: DEF 14A
Chunk 43
---
     |           |
|          |     | 5/1/2024   |     |        |     |        |     |       |        |     |            |     |       |     |         |     | 23,806 |     | 1,975,184 |

(a) Option awards vest in 25% increments annually over a four-year period. Additional information regarding stock options is included beginning on page 34. We granted limited stock appreciation rights, or “SARs,” in tandem with each option award. Additional information regarding SARs is included on page 35and under the chart titled “Grants of Plan-Based Awards in Fiscal 2025.”

(b) Mr. Wilson’s December 2022 stock awards are stock-settled restricted stock units, which we refer to as “market stock units” or “MSUs.” The number of shares awarded for each MSU award is calculated by dividing the average closing price of our common stock during the final 40 trading days of the vesting period by the fair value of our stock price on the date of grant. The resulting quotient is capped at two. The quotient is multiplied by the number of MSUs granted to yield the number of shares of stock awarded. To calculate the market value of the unvested MSUs in the table above, we assumed that the average closing price of our stock during the final 40 trading days of the three-year period was equal to the closing price of our stock on February 28, 2025, the last trading day of our fiscal year (which was $82.97). MSUs vest on the third anniversary of the grant date.

(c) The fiscal 2023 stock awards, the fiscal 2024 stock awards, and the fiscal 2025 stock awards were stock-settled performance stock units, which we refer to as “performance stock units” or “PSUs.” If earned, PSUs vest on the third anniversary of the grant date, which for the fiscal 2023 PSUs will be May 3, 2025, for the fiscal 2024 PSUs will be May 1, 2026, and for the fiscal 2025 PSUs will be May 1, 2027. To calculate the number of shares awarded at vesting, each PSU is multiplied by a percentage that represents the Company’s success in meeting the performance goals set by the Committee. If a threshold performance goal is met, each PSU is multiplied by the Company’s performance against the threshold