Company: KMX
Filing Date: 2025-05-08
Form Type: DEF 14A
Source: 0001170010-25-000073
Chunk: 20

Company: CARMAX INC
Filing Date: 2025-05-08
Form: DEF 14A
Chunk 20
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 fiscal 2024 as compared with fiscal 2023, to the extent the NEOs were NEOs in both such fiscal years.  For fiscal 2025, the Committee tied the PSUs to pre-tax income performance. |

#### How We Make Compensation Decisions
The Committee oversees our executive and director compensation programs and determines all executive officer and director compensation.

#### 25
COMPENSATION PHILOSOPHY, OBJECTIVES, AND GOVERNANCE

| What We Do                                                                                                                                                                                                                                                                                         |     | What We Do Not Do                                                                                                                                                                                                                                               |
| Pay for Performance:We reward performance that meets predetermined goals.  A significant portion of our NEOs’ (including our CEO’s) compensation is based on Company performance.                                                                                                                  |     | No tax gross-ups or excessive perquisites:We do not provide tax gross-ups on perquisites or benefits, and we do not pay NEOs excessive perquisites.                                                                                                             |
| Clawback Policy:CarMax has adopted a clawback policy, requiring the Company cancel and recoup granted, vested or paid incentive-based compensation, wholly or partly, with a look-back period of three years in the event of a required accounting restatement of any Company financial statement. |     | No Single-Trigger Change-in-Control Benefits:An Executive Officer may receive change in control benefits only upon both (1) a change in control and (2) a qualifying termination of employment occurring within a specified timeframe of the change in control. |
| Rigorous stock ownership requirements:Executive officers are required to own CarMax stock worth two to six times their base salary (depending on position).                                                                                                                                        |     | No hedging and pledging:Under our Policy Against Insider Trading, executive officers are prohibited from hedging and pledging CarMax stock.                                                                                                                     |
| Challenging incentive targets:Targets for incentive awards are set at the beginning of the performance period, taking into consideration our business strategy and operating goals.                                                                                                                |     | No repricing:We do not reprice stock option awards.                                                                                                                                                                                                             |
| Risk mitigation:Our compensation programs include balanced performance metrics, clawback provisions, and an oversight process to identify risk.                                                                                                                                                    |     |                                                                                                                                                                                                                                                                 |

CarMax has a pay-for-performance philosophy. The Committee believes that the best way to implement this philosophy is by tying a significant portion of our executives’ total direct compensation to the attainment of our financial goals and multi-year stock price appreciation. In fiscal 2025, an average of 85% of the target total direct compensation of