Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 44

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 44
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 years, prompting concern given the Company's stated philosophy of targeting executive compensation at or near the 50th percentile of the peer group. Based on this feedback, the Committee worked with its compensation consultant to review and update the Company's peer group to remove peer companies that are significantly larger than the Company and to add companies that are closer in size to the Company. This review resulted in the removal from the peer group of Ethan Allen Interiors, Inc., Insteel Industries, Inc., Rocky Brands, Inc., Superior Group of Companies, Inc., and the Lovesac Company, and the addition of Jerash Holdings (US), Inc. and Crown Crafts, Inc. Accordingly, the fiscal 2025 peer group approved by the Committee comprised the following 13 companies:

| Bassett Furniture Industries, Inc.Crown Crafts, Inc.Delta Apparel, Inc.Flexsteel Industries, Inc.Hooker Furniture Corp., Inc. | Jerash Holdings (US), Inc.Lakeland Industries, Inc.Live Ventures IncorporatedPurple Innovations Inc. | The Dixie GroupUnifi, Inc.Vera Bradley, Inc.Vince Holding Corp. |

As discussed above, the Committee paused ongoing market adjustments intended to gradually elevate NEO target pay to a position at or near the market 50 th percentile (or median) levels, as compared to the Company’s peer group, due to persistent challenging business conditions. However, in the future, once business conditions normalize, the Committee expects to continue to gradually implement the following NEO target pay positioning objectives, while also continuing to be mindful of Company and individual performance, market conditions, and relative size positioning versus peers: • targeting base salary at or near median market levels in order to enhance the Company’s ability to attract and retain key executives, while balancing the need to be market competitive with the need to control fixed costs; • targeting annual cash incentive compensation at or near median market levels in order to reward performance for achieving goals, while also setting performance goals that are challenging, realistic, and sustainable; • targeting long-term equity incentive compensation at or near median market levels to reflect the significance of long-term incentives to executive compensation, further enhance retention, equity stakes, and alignment with shareholder interests, and ensure that total direct compensation is reasonably competitive, with the understanding that realizable values can be at, above, or below target levels due to their linkage to performance and/or stock price; and • total direct compensation will vary based on performance, targeted at or near median market levels when performance is at target levels, with the understanding that total direct compensation can be above