Company: GWW
Filing Date: 2025-02-20
Form Type: PRE 14A
Source: 0001104659-25-015730
Chunk: 57

Company: W.W. GRAINGER, INC.
Filing Date: 2025-02-20
Form: PRE 14A
Chunk 57
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 of annualized base salary, target annual and long-term incentive at the grant date fair value for 2024). Average actively employed NEO pay mix chart reflects annual target data as of December 31, 2024.

| ​ | CORPORATEGOVERNANCE | ​ | ​ | PROPOSAL 1:ELECTION OFDIRECTORS | ​ | ​ | PROPOSAL 2:RATIFY THEINDEPENDENTAUDITOR | ​ | ​ | EXECUTIVECOMPENSATION | ​ | ​ | PROPOSAL 3:SAY ON PAY | ​ | ​ | PROPOSAL 4: APPROVALAND ADOPTION | ​ | ​ | QUESTIONS ANDANSWERS | ​ | ​ | APPENDICES | ​ |

TABLE OF CONTENTS

| ​ | invest.grainger.com | ​ | ​ | 47 | ​ | ​ | ● | ​ |

| ​ | ​                                              | ​ | ​ | ​ | Component                                                                                                                                  | ​ | ​ | ​ | Purpose                                                                                                                                                                                    | ​ | ​ | ​ | Link to Strategy & Performance                                               | ​ |
| ​ | Short-Term                                     | ​ | ​ | ​ | Base Salary                                                                                                                                | ​ | ​ | ​ | Establishes a market competitive and appropriate level of fixed compensation to attract and retain leaders.                                                                                | ​ | ​ | ​ | Fixed and based on individual performance which considers the Grainger Edge. | ​ |
| ​ | Annual Incentives—Management Incentive Program | ​ | ​ | ​ | Encourages annual results that create shareholder value.                                                                                   | ​ | ​ | ​ | Linked to annual achievement of predetermined Company objectives—daily, organic constant currency sales and total Company adjusted ROIC with an ESG modifier.                              | ​ |   |   |                                                                              |   |
| ​ | Long-Term                                      | ​ | ​ | ​ | Long-Term Incentive Plan                                                                                                                   | ​ | ​ | ​ | Supports retention through a balanced mix of performance-based and time-based incentives.                                                                                                  | ​ | ​ | ​ | The initial grant value is linked to individual performance and potential.   | ​ |
| ​ | Performance-based—Performance Share Units      | ​ | ​ | ​ | Aligns compensation with the Company’s long-term strategic growth and profitability goals while also connected to stock price performance. | ​ | ​ | ​ | Performance-based, linked to Company strategy and requires achieving predetermined Company three-year average profitability and growth goals.                                              | ​ |   |   |                                                                              |   |