Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 74

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 74
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 fair value of service-based restricted stock unit awards issued to our directors, computed in accordance with ASC Topic 718. For information about the relevant assumptions made in calculating compensation expense, please see note 15 – “Stock-Based Compensation” to the financial statements included in our fiscal 2025 Annual Report on Form 10-K.

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The amount reflected in this column shows the amount of interest earned during the fiscal year on Mr. Saxon’s account balance under our supplemental non-qualified deferred compensation plan that the SEC considers to be “above market.” The Compensation Committee is responsible for setting this interest rate. The interest rate for fiscal 2025 was the rate for 30-year U.S. Treasury notes plus 2.5%. Mr. Saxon was eligible to participate in this plan by virtue of his status as an executive officer of the Company. Company contributions to the account of Mr. Saxon were discontinued during fiscal 2021. For more information about this plan, see “Non-Qualified Deferred Compensation” above.

The amount reflected in this column is compensation for all of the services Mr. Saxon provided to the Company in fiscal 2025, including for serving as the chairman of the Board and as a strategic consultant, as described above. The Compensation Committee did not allocate a specific portion of this compensation to Mr. Saxon’s role as chairman of the Board, but considered the entire amount to be compensation for all of the services Mr. Saxon provided to the Company during fiscal 2025. Mr. Saxon ceased to serve as strategic advisor/consultant to the Company at the conclusion of fiscal 2025, and for fiscal 2026 Mr. Saxon will be paid an aggregate amount of $200,000, payable in cash in quarterly installments, for his service as chairman of the Board.

Effective March 5, 2025, Mr. Tyson was appointed as a director of the Company. Accordingly, Mr. Tyson was paid $13,750 on April 1, 2025, as a quarterly cash retainer, and did not receive any equity award for his service in fiscal 2025. Mr. Tyson will stand for election for a one-year term at the Annual Meeting.

Mr. Davis and Mr. Kelly did not stand for re-election upon expiration of their current term at the 2024 annual meeting of shareholders. Consequently, their respective payments of $13,750 on July 1, 2025, represent the final quarterly installment of their