Company: BBY
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0001140361-25-016935
Chunk: 53

Company: BEST BUY CO INC
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 53
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 NEOs pursuant to our fiscal 2025 LTI program under our 2020 Omnibus Incentive Plan. Form of Fiscal 2025 LTI Award. The fiscal 2025 LTI program featured a mix of performance share awards and time-based restricted shares. This results in a balanced portfolio of compensation rewards for NEOs with performance share awards based on relative total shareholder return (to reward relative performance) and time-based restricted shares (to promote retention). In fiscal 2025, all NEOs received 50% of their annual LTI award in performance shares and 50% in time-based restricted shares. The NEOs receive an LTI grant once per year at a regularly scheduled Compensation Committee meeting that typically occurs in the first quarter of our fiscal year. In addition, our NEOs can receive supplemental equity awards when warranted to bring their annual compensation in line with market pay or to reflect an increase in responsibilities (no such awards were granted in fiscal 2025). In fiscal 2025, the closing price of our common stock on the grant date and an accounting valuation for each type of award was used to convert the award dollar value to a number of units. Restricted stock and performance share awards include dividend equivalents, which begin to accrue for each declared dividend following the grant but are not converted into dividends until the restricted shares underlying the grants are earned, vested or payable. Time-Based Restricted Share Awards: The time-based restricted shares vest in equal installments of one-third on the three successive anniversaries of the grant date, provided the NEOs have been continually employed with us through those dates. Performance Share Awards: The performance share awards are earned based on total shareholder return (“TSR”) relative to the S&P 500 Index over a three-year performance period. TSR was selected as the metric based on its direct link to shareholder value creation. The S&P 500 is used as a proxy for the broad variety of other investment opportunities available to investors. The relative TSR performance goals are as follows:

|                     |     | Relative TSR Percentile Ranking |     | No. of Shares Earned 
 (as% of Target)      |
| Less than Threshold |     | Less than 30th Percentile       |     | —%                   |
| Threshold           |     | 30th Percentile                 |     | 50%                  |
| Target              |     | 50th Percentile                 |     | 100%                 |
| Maximum             |     | 70th Percentile and above       |     |