Company: ORLY
Filing Date: 2025-03-31
Form Type: DEF 14A
Source: 0000898173-25-000017
Chunk: 28

Company: O REILLY AUTOMOTIVE INC
Filing Date: 2025-03-31
Form: DEF 14A
Chunk 28
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ATION OF EXECUTIVE OFFICERS | ​ |

industry, the performance of industry peers, and general economic conditions. The targets for the incentive compensation plans set by the Human Capital and Compensation Committee generally correspond to this operating plan. The comprehensive operating plan for the 2024 fiscal year was approved by the Board in February of 2024 and reflects the projected results for the 2024 fiscal year. The Company’s actual performance in each of the target areas is compared to the individual targets predetermined by the Human Capital and Compensation Committee to determine the incentive amount, if any, earned by each executive officer. Upon achievement of such performance goals, executive officers receive incentive compensation based upon a percentage of their respective base salaries for the attainment of a defined performance goal. The performance achievement percentage may not exceed 500% per participant, and the incentive compensation achieved has a maximum payout of $10,000,000 per participant. Target The overall potential compensation varies depending upon the executive’s position; however, under the Company’s 2017 Incentive Award Plan (the “Plan”), the maximum aggregate amount of cash compensation that may be paid to any one participant in any year is $10,000,000. For 2024, for each of the Company’s NEOs who participated in the Plan, the targets as a percentage of individual base salaries are identified in the table below, which were, in each case, the same position level salary targets applicable in 2023:

| ​                                        |                         ​ | ​ |
| ​                                        |               Target as a |   |
| Executive                                | Percentage of Base Salary |   |
| Brad Beckham, Chief Executive Officer    |                       100 | % |
| Brent G. Kirby, President                |                       100 | % |
| Jeremy Fletcher, Chief Financial Officer |                        80 | % |
| Scott R. Ross, Chief Information Officer |                        80 | % |

The Board sets performance target achievement levels for its executives that are challenging enough to require strong and consistent effort by the executives to be achieved and such that the Company’s actual performance above projections would result in payouts above target levels and would likely also result in an increase in total shareholder value. Over the last five years, annual incentive payouts under the executive incentive compensation plan have exceeded target four times, ranging from 50% to 765% of target during this period of time, and over that same period, the value of the Company’s stock, and associated total shareholder return, increased 171%.

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