Company: KMX
Filing Date: 2025-05-08
Form Type: DEF 14A
Source: 0001170010-25-000073
Chunk: 59

Company: CARMAX INC
Filing Date: 2025-05-08
Form: DEF 14A
Chunk 59
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 are as effective as mailing a letter to the CEO.

To guard against the CarMax Board of Directors becoming complacent shareholders need the ability to call a special shareholder meeting to help the Board adopt new strategies when the need arises.

This proposal topic is now more important than ever because there has been a mad rush of Board exculpation proposals to limit the financial liability of directors when they violate their fiduciary duty which is a disincentive for good director performance. Since a special shareholder meeting can be called to replace a director, adoption of this proposal could foster better performance by our directors.

With the widespread use of online shareholder meetings it is much easier for management to conduct a special shareholder meeting for important issues and CarMax bylaws thus need to be updated accordingly.

<div align='center'>Please vote yes:

Special Shareholder Meeting Improvement — Proposal 4</div>

#### 64

#### The Board’s Statement in Opposition
The Board has carefully considered the foregoing shareholder proposal and concluded that it is not in the best interests of CarMax or its shareholders and recommends that shareholders vote against the proposal. Our reasons are described below.

Our current special meeting right strikes the appropriate balance and is consistent with market practice.

The Board recognizes that providing shareholders with the right to call special meetings is viewed by some shareholders as an important governance mechanism. After thoughtful consideration, and consistent with its practice of considering shareholder feedback, the Board amended CarMax’s Bylaws in January 2025 to enable shareholders owning a combined 20% of CarMax’s outstanding shares of common stock to require CarMax to call a special meeting.

We believe that the current 20% ownership threshold is reasonable and strikes an appropriate balance between enhancing our shareholders’ ability to act on important and urgent matters and ensuring that a meaningful percentage of our shareholders agree on the need for a special meeting before a special meeting can be called. Our concern with a threshold set too low is that a small group of shareholders could use special meetings to advance their own interests, without regard to the broader interests of CarMax’s shareholders and may be contrary to the best interests of CarMax and its shareholders. Further, special meetings impose significant administrative and operational costs on the Company, requiring a significant amount of attention by the Board, management and employees, distracting them from normal business operations and potentially diverting Board and management time and attention from strategy and execution. Furthermore, shareholders with smaller holdings will continue to have the ability under the SEC’s rules, CarMax’s Bylaws and Virginia law, to present proposals at our annual shareholder meetings