Company: ORLY
Filing Date: 2025-03-31
Form Type: DEF 14A
Source: 0000898173-25-000017
Chunk: 30

Company: O REILLY AUTOMOTIVE INC
Filing Date: 2025-03-31
Form: DEF 14A
Chunk 30
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 management interests with those of the Company’s shareholders. Stock options are more prevalently awarded to Team Members for the following reasons:

| ● | Stock options directly align management’s interest with the long-term interests of shareholders by awarding value upon stock price appreciation and long-term value creation. |

| ● | The 10-year term of stock options keep management focused on a 7- to 10-year performance period, the typical outstanding life of options awarded to executives. |

The Human Capital and Compensation Committee has also established specific stock option awards to be granted upon the achievement of certain defined advancements in position. These position grants occur on the date of promotion or appointment to such positions with an option price equal to the closing market value of the common stock underlying the option on such date. It is the Company’s belief that these position-related grants significantly increase the retention, motivation, and overall performance of its executives, management, and other Team Members. In furtherance of this belief, the Company also has a Team Member stock purchase plan that enables Team Members to purchase O’Reilly common stock at a discount through payroll deductions, and Team Members are also able to invest in the Company’s common stock through its 401(k) plan. Execu tive Stock Ownership Guidelines In keeping with our compensation philosophy and objectives, we maintain robust stock ownership requirements for all executive officers. Please see the “Officer and Director Stock Ownership Guidelines” section of this proxy statement for details of the stock ownership requirements for executive officers. Other Benefits Benefits We offer a competitive benefits package with many options to meet the varying needs of our Team Members. We provide our full- and part-time Team Members with the information they need to make informed decisions and select benefits that provide the best value and protection for them. Our executive officers participate in many benefits on the same terms that are offered to all of our U.S. Team Members. We also provide our executive officers with limited additional benefits and perquisites for retention and recruiting purposes, to replace benefit opportunities lost due to regulatory limits, and to enhance their ability to focus on our business. Perquisites can include allowance for personal automobile, reimbursement for health and country club memberships, and reimbursements under the Company’s executive management medical reimbursement benefit plan. Perquisite amounts for the Company’s NEOs are included in the “Summary Compensation Table” in the column “All Other Compensation.” The Human Capital and Compensation Committee believes the offered perquisites are limited and reasonable. Retirement Plans The Company sponsors a 401(k) Profit Sharing and Savings Plan (the “401(k)