Company: GWW
Filing Date: 2025-02-20
Form Type: PRE 14A
Source: 0001104659-25-015730
Chunk: 65

Company: W.W. GRAINGER, INC.
Filing Date: 2025-02-20
Form: PRE 14A
Chunk 65
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 in prior years provides the NEOs and other executives with RSU grants allocated based on individual performance. RSUs align NEOs and other executives’ interests to stock price performance over time and three-year graded vesting encourages meaningful retention. 2022 Performance Share Unit (PSU) Program The Compensation Committee approved the final results of the 2022-2024 PSU program at 118%. The 2022-2024 cycle was based on a three-year performance period from January 1, 2022 and ending December 31, 2024 and was underpinned by three performance metrics—U.S. share gain (a relative metric), Endless Assortment daily sales growth and total Company adjusted operating margin performance. U.S. share gain was 465 bps, Endless Assortment daily sales growth was 14.2% and total Company adjusted operating margin performance expanded 119 bps on average over the three-year performance period. Therefore the payout for these PSUs was 118% of target. (1) No dividend equivalents were paid on PSUs. The following table shows the performance and payout scenarios that were established at the beginning of 2022:

| ​ | Total Payout(1)(2) | ​ | ​ | ​ | U.S. Share Gain(2)(3) | ​ | ​ | ​ | Endless Assortment DailySales Growth(2)(4) | ​ | ​ | ​ | Total Company AdjustedOperating MarginPerformance(2)(5) | ​ |
| ​ | 0%                 | ​ | ​ | ​ | 0 bps                 | ​ | ​ | ​ | 0%                                         | ​ | ​ | ​ | <-160 bps                                               | ​ |
| ​ | 1% to 79%          | ​ | ​ | ​ | 1 to 149 bps          | ​ | ​ | ​ | 1% to 9%                                   | ​ | ​ | ​ | -159 to -21 bps                                         | ​ |
| ​ | 80% to 99%         | ​ | ​ | ​ | 150 to 249 bps        | ​ | ​ | ​ | 10% to 14%                                 | ​ | ​ | ​ | -20 to 19 bps                                           | ​ |
| ​ | 100%               | ​ | ​ | ​ | 250 to 350 bps        | ​ | ​ | ​ | 15% to 20%                                 | ​ |