Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 43

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 43
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, our 401(k) plan (available to all employees) and, for certain officers, a supplemental non-qualified deferred compensation plan        |     | Providing competitive retirement-planning benefits to attract and retain skilled management                                                                                                                    |     | Not performance-based                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Perquisites                     |     | Automobile allowance; voluntary participation in executive health program where Company pays the cost of a comprehensive health assessment to address overall medical needs and assess health risk          |     | Providing limited business-related perquisites                                                                                                                                                                 |     | Not performance-based                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Severanceprotectionplan         |     | Eligibility to receive cash severance in connection with certain qualifying  termination of employment scenarios in anticipation of or within a defined period after a change of control                    |     | Providing a competitive compensation package and ensuring continuity of management in the event of any actual or threatened change in control of our Company                                                   |     | Not performance-based                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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Position Relative to Market and Peer Comparison Group Traditionally, the Committee compares the Company’s pay practices and levels of pay to those of other companies within our industry or related industries with whom we compete for management talent on an annual basis. The Committee views such data to be useful information but does not believe such data should be deemed the best and final determinant of its compensation decisions. The Committee makes prudent distinctions between Culp’s executive compensation program and the practices at comparable companies when deemed necessary to maintain an effective compensation program. It is the Company’s belief that, in the final analysis, performance rather than benchmarking data should drive its executive compensation decisions. Some of the other factors also considered by the Committee in setting executive compensation include incumbent roles, responsibilities, tenure, internal equity, market conditions, and the desire to attract, retain, and motivate our NEOs and reinforce strategic objectives in support of long-term value creation. The Committee traditionally reviews peer group composition on an annual basis and considers refinements as deemed appropriate. The Committee also traditionally engages an independent compensation consultant on an annual basis to advise it about a number of compensation-related issues, including development of an appropriate list of peer companies and periodic assessments of pay competitiveness and alignment with performance. For fiscal 2025, in response to feedback from shareholder outreach as described below under "Shareholder Engagement and Executive Compensation Program Changes for Fiscal 2025," the Committee approved certain changes to the Company's peer group. In particular, certain shareholders noted that the Company's relative size positioning versus its peer group had declined in prior