Company: QXO-PB
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001140361-25-011886
Chunk: 38

Company: QXO, Inc.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 38
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 value of the awards to the company’s long-term stock performance. At the time the metric was established, a relative TSR was considered more appropriate than an operational target because QXO had not yet acquired a building products distribution business. While the company had announced its intention to pursue a strategy of building a tech-forward leader in that industry, the specific business had not been identified, and the early focus remained on securing additional investment to support that strategy. |

| ▪ | Performance Measurement Periods. The PSUs have a combination of annual performance periods and a cumulative long-term performance period to encourage both long-term strategies and continued successful annual performance. The annual tranches represent a total of 50% of the award, with the first tranche being measured on December 31, 2025 (using the methodology specified in the award agreement) against JPE’s original investment price of approximately $4.57. Subsequent annual tranches will measure the stock performance from the beginning to the end of the applicable year. The long-term cumulative tranche represents the remaining 50% of the award and will be measured on December 31, 2028 against JPE’s original investment price of approximately $4.57, which directly ties to sustained long-term stock price performance as compared to Mr. Jacobs’ original financial investment in the company. |

Similar terms were approved for equity awards granted to other new executive officers in 2024 to ensure alignment among the management team. Employment Agreement with Brad Jacobs, Chief Executive Officer On June 5, 2024, the company entered into an employment agreement (the “Jacobs Employment Agreement”) with Mr. Jacobs for a five-year term as Chief Executive Officer, effective as of the closing of the Equity Investment. He was also appointed Chairman of the Board. The Jacobs Employment Agreement provided for an initial annual base salary of $750,000 and an initial target annual bonus of 100% of base salary. Mr. Jacobs’ annual base salary and target annual bonus will increase (but not decrease) each calendar year of the term depending on the company’s annualized revenue run rate as of the preceding December 31, as follows:

| Annualized Revenue Run Rate Band |     |      Base 
    Salary 
       ($) |     | Target        
 Bonus         
 (% of Salary) |     |    Target 
     Bonus 
    Amount 
       ($) |
| $ 1 Billion to $5 Billion        |     |   950,000 |     | 135%          |     | 1,282,