Company: KMX
Filing Date: 2025-05-08
Form Type: DEF 14A
Source: 0001170010-25-000073
Chunk: 60

Company: CARMAX INC
Filing Date: 2025-05-08
Form: DEF 14A
Chunk 60
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As of January 2025, of the S&P 500 companies that allow shareholders to call special meetings, more than half have set the threshold at 20% or higher, with nearly one-third of companies setting the aggregate threshold at 25% (FactSet). In addition, nearly one-third of S&P 500 companies do not allow shareholders to call special meetings at all (FactSet). Our special meeting threshold is already lower than most large companies, and we see no reason to reduce it further.

We are committed to strong corporate governance and a robust shareholder engagement program to ensure Board accountability.

We also believe that the current 20% ownership threshold is appropriate because CarMax is committed to high standards of corporate governance and actively engages with its shareholders. Governance at CarMax is centered around the principle of integrity, which guides our actions to uphold the ethical standards of our business and culture. Our Board and its four committees direct our governance framework and practices. The Board regularly reviews these practices and has made significant changes to these practices in response to shareholder feedback. Our Board also reviews our leadership structure periodically to ensure it continues to be effective. For additional information regarding our commitment to strong corporate governance, including our shareholder-focused practices, see page 10of this Proxy Statement.

We maintain regular engagement with our shareholders, seeking a comprehensive understanding of their perspectives on various topics. This approach has proven to be effective, allowing us to gain insights into areas of concern and focus, and has enabled us to remain responsive to shareholder perspectives. We are committed to continuing our proactive engagement efforts to solicit direct feedback from our shareholders, aiding our ability to assess our governance, performance and our strategy. For additional information regarding our commitment to shareholder engagement, see page 19of this Proxy Statement.

Given the fact that shareholders already have a meaningful and balanced right to call special meetings and CarMax has strong corporate governance practices with Board accountability to shareholders, the Board believes that adoption of the shareholder proposal is both unnecessary and not in the best interests of CarMax’s shareholders.

The affirmative vote of a majority of the votes cast is required to approve the shareholder proposal. The vote is an advisory vote, and therefore not binding.

The Board recommends a vote AGAINST Proposal Four.

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| CARMAX SHARE OWNERSHIP |

Share Ownership of Directors and Executive Officers

The following table includes information about our common stock beneficially owned as of March 31, 2025, by:

▪ Our CEO and the other named executive officers.

▪ Each director or nominee for director.

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