Company: ORLY
Filing Date: 2025-03-14
Form Type: PRE 14A
Source: 0000898173-25-000013
Chunk: 12

Company: O REILLY AUTOMOTIVE INC
Filing Date: 2025-03-14
Form: PRE 14A
Chunk 12
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 and Nasdaq listing standards require the Company to file the Clawback Policy as an exhibit to its Annual Reports on Form 10-K, and to make detailed disclosures on how the Clawback Policy is implemented. For example, if a mandatory “no fault” basis clawback is triggered under the Clawback Policy due to an accounting restatement, the Company must disclose, among other things, the aggregate dollar amount of erroneously awarded incentive-based compensation attributable to such accounting restatement and the aggregate dollar amount of erroneously awarded compensation that remains outstanding at the end of the last completed fiscal year. Also, in the event the Company determines recovery of such erroneously awarded compensation is “impracticable” (as defined under SEC rules), the Company must disclose the monetary amount forgone and describe why it did not pursue recovery. In addition, if the Company is required to prepare an accounting restatement but concludes recovery of compensation is not required under the Clawback Policy, the Company must disclose this fact and explain how it reached this conclusion. Accordingly, SEC rules and Nasdaq listing standards already require the Company to disclose meaningful information regarding the Clawback Policy and the recovery of erroneously awarded compensation. Therefore, the additional disclosures requested by this proposal would be an unnecessary use of the Company’s resources, resulting in undue cost and administrative burden without commensurate benefit to our shareholders. The Company is committed to maintaining and enhancing a culture focused on integrity and accountability, and has implemented various policies to hold directors, officers and team members accountable for unethical conduct. The Company is built on the foundation of the O'Reilly Culture, in which ethical conduct is encouraged and rewarded and improper conduct is taken seriously and addressed. In addition to the Clawback Policy, the Company has implemented several other policies to help manage risk and define expectations for ethical decision-making, accountability and responsibility. For example, the Company’s Code of Business Conduct and Ethics (“Code”) prohibits directors, officers and team members from taking any actions that could undermine proper relationships or tarnish the Company’s reputation or integrity, and requires such persons to comply in all respects with applicable laws and regulations. The Company also has a robust Insider Trading Policy and Harassment, Discrimination and Retaliation Free Work Environment Policy. The Code and these policies include compliance standards and procedures to ensure

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| 2025 PROXY STATEMENT | O’REILLY AUTOMOTIVE, INC.  |  21 |

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| PROPOSAL 5 – SHAREHOLDER