Company: KMX
Filing Date: 2025-05-08
Form Type: DEF 14A
Source: 0001170010-25-000073
Chunk: 11

Company: CARMAX INC
Filing Date: 2025-05-08
Form: DEF 14A
Chunk 11
---
 shifts in market fundamentals, technology and consumer preferences. The Board carries out its role primarily through regular reviews of the Company’s strategic plan and discussions with management, which include both broad-based presentations and more in-depth analyses and discussions of specific areas of focus. In addition, regular Board meetings throughout the year include presentations and discussions with management on significant initiatives implementing the strategic plan; developments affecting an area of the Company’s business; and on trends, competition, and emerging challenges and opportunities. The Board also reviews the strategic plan, including actions taken and planned to implement the strategy, as part of its review and approval of the annual budget.

The Board’s oversight of risk management enhances the directors’ understanding of the risks associated with the Company’s strategic plan and its ability to provide guidance to and oversight of senior management in executing the Company’s strategy.

#### BOARD’S ROLE IN RISK OVERSIGHT
Taking reasonable and responsible risks is an inherent part of our strategy and is critical to achieving our strategic objectives. Our Board undertakes its responsibility to oversee risks to CarMax through a risk governance framework designed to:

• identify critical risks;

• allocate responsibilities for overseeing those risks to the Board and its committees; and

• evaluate the Company’s risk management processes.

The Board does not view risk in isolation. Rather, it considers risks in its business decisions and as part of CarMax’s business strategy. This consideration occurs in the ordinary course of the Board’s business and is not tied to any of the formal processes described below, although it is enhanced by those processes.

#### 17
The following table describes the components of CarMax’s risk governance framework.

| Assignment of Risk Categories 
 to Board and its Committees   |     | The Board has assigned oversight of certain key risk categories to either the full Board or one of its committees. For each category, management reports regularly to the Board or the assigned committee, as appropriate, describing CarMax’s strategies for monitoring, managing and mitigating risks that fall within that category.                                                     
 Examples of the risk categories assigned to each committee and the full Board are described below. This list is not comprehensive and is subject to change:                                                                                                                                                                                                                                 |     |                                                                                                                                                                              |
|                               |     | §                                                                                                                                                                                                                                                                                                                                                                                           |     | Audit Committee: oversees risks related to financial reporting, compliance and ethics, and legal and regulatory issues.                                                      |
|                               |     | §                                                                                                                                                                                                                                                                                                                                                                                           |     | Compensation and Personnel Committee: oversees risks related to human resources and compensation practices.                                                                  |
|                               |     | §