Company: CLX
Filing Date: 2025-10-07
Form Type: DEF 14A
Source: 0001552781-25-000311
Chunk: 26

Company: CLOROX CO /DE/
Filing Date: 2025-10-07
Form: DEF 14A
Chunk 26
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 of the year. The MDCC retains discretion to adjust the Company Multiplier to ensure alignment between pay and performance and  
 reflect shareholder interests.                                                                                                 |

Clorox has historically employed an individual multiplier for each NEO as part of the determination of the AIP award. For fiscal year 2025 and future years, the MDCC has determined an individual multiplier will not be applied when calculating the amount of our NEOs’ AIP awards. Rather, given the enterprise role each NEO plays (and their resulting collective ownership of Clorox outcomes), the MDCC believes these awards should be calculated solely by reference to the Company Multiplier, which places more focus on key operational goals and the accountability of our NEOs for Clorox’s enterprise-level performance, while better aligning the interests of our NEOs with Clorox shareholders. Target Award.Each year, the MDCC sets an annual incentive target for each NEO as a percentage of their base salary, based on an assessment of short-term incentive (STI) targets in the compensation peer group and other factors such as individual capabilities and experience. The annual incentive target is typically set near the median of STI targets for comparable positions in the compensation peer group. Company Multiplier.At the beginning of each fiscal year, the MDCC sets financial goals for the AIP based on targets approved by the Board. At the end of the year, the MDCC reviews Clorox’s results against the goals set at the beginning of the year and approves the final Company Multiplier.

| The                                                                        
 Clorox Company 2025 Proxy Statement > Compensation Discussion and Analysis | 55 |

For fiscal year 2025, the MDCC established goals for net customer sales, net earnings attributable to Clorox, and gross margin to drive sustainable, profitable growth and short- and long-term total shareholder return. This combination of metrics balances a focus on both top-line and bottom-line performance. Consistent with our longstanding practice, fiscal year 2025 targets for our AIP metrics were set equal to our Board-approved fiscal year 2025 budget. Setting targets equal to budget aligns the AIP with the Board’s approval of appropriate expected outcomes for the year and Clorox’s financial outlook as communicated to investors at the beginning of each fiscal year. The process described above resulted in targets moderately to significantly above prior year actuals. The target for Net Customer Sales represented a 4% increase in sales for the portion of the business excluding divestitures; it was flat to prior year actuals