Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 8

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 8
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 the mattress fabrics reporting unit; and

no executive officers earned any performance-based shares under the LTIP program that were eligible to vest in fiscal 2025 due to the Company's below-threshold operating performance during the applicable three-year performance period.

Compensation Committee Responsiveness to Fiscal 2024 Say-on-Pay Vote

In response to the relatively low level of support for our Say-on-Pay proposal at the 2023 annual meeting of shareholders (a 67.6% approval rate, as compared to historical levels of support averaging over 90%), in fiscal year 2024, we invited 13 of our then largest shareholders, collectively representing over 56% ownership of our then outstanding common stock (based on management estimates derived from third-party reports on the Company's share ownership), to directly engage with our Compensation Committee, and held discussions with shareholders representing more than 39% of the Company's then outstanding common stock. All discussions were led by the Chair of our Compensation Committee. After considering feedback from these discussions, our Compensation Committee approved certain changes to the Company's industry peer group composition used for market benchmarking, as well as certain changes to our executive compensation program design, for fiscal 2025. Shareholder support for our Say-on-Pay proposal at our 2024 annual meeting of shareholders improved to approximately 83%. Additional details are included in the Compensation Discussion and Analysis section of this Proxy Statement under the heading "Shareholder Engagement and Executive Compensation Program Changes for Fiscal 2025."

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GENERAL INFORMATION This Proxy Statement is furnished to the shareholders of Culp, Inc. (the “Company”) by the Company’s Board of Directors in connection with the solicitation of proxies for use at the 2025 Annual Meeting of Shareholders of the Company (the “Annual Meeting”) or any adjournment thereof. The Company will hold the Annual Meeting on Wednesday, September 24, 2025, at 8:00 AM local time at the Company’s corporate offices located at CULP Innovation Center at Congdon Yards, 410 W. English Road, High Point, North Carolina 27262. The purpose of the Annual Meeting is to take action on the items described in this Proxy Statement, and on any other business that properly comes before the meeting. We are pleased to be distributing our proxy materials to shareholders via the Internet under the “notice and access” approach permitted by the rules of the Securities and Exchange Commission (the “SEC”). As a result, we are mailing to