Company: ORLY
Filing Date: 2025-03-14
Form Type: PRE 14A
Source: 0000898173-25-000013
Chunk: 10

Company: O REILLY AUTOMOTIVE INC
Filing Date: 2025-03-14
Form: PRE 14A
Chunk 10
---
 that such a change would be in the best interests of the Company and its shareholders.

| ​                    | ​                                |
| 2025 PROXY STATEMENT | O’REILLY AUTOMOTIVE, INC.  |  19 |

#### PROPOSAL 5 – SHAREHOLDER PROPOSAL ENTITLED “SUPPORT IMPROVED CLAWBACK POLICY FOR UNEARNED EXECUTIVE PAY”​THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “AGAINST” THE SHAREHOLDER PROPOSAL ENTITLED “SUPPORT IMPROVED CLAWBACK POLICY FOR UNEARNED EXECUTIVE PAY.”​The Company has been advised that Mr. John Chevedden, 2215 Nelson Avenue, No. 205, Redondo Beach, CA 90278, who has indicated he is a beneficial owner of at least the minimum required amount of the Company’s common stock, intends to submit the following proposal at the Annual Meeting:“Proposal 5 – Support Improved Clawback Policy for Unearned Executive PayShareholders ask the Board of Directors to amend the Company Policy on recoupment of incentive pay to apply to the each Named Executive Officer and to state that conduct or negligence – not merely misconduct – shall trigger mandatory application of that policy.  Also the Board shall report to shareholders in each annual meeting proxy the results of any deliberations regarding the policy, including the Board's reasons for not applying the policy after specific deliberations conclude, about whether or not to cancel or seek recoupment of unearned compensation paid, granted or awarded to NEOs under this policy.This improved clawback policy shall at least be included in the Governess Guidelines of the Company or similar document and be easily accessible on the Company website.The current Clawback Policy is clearly incomplete and can be difficult for shareholders to access.Wells Fargo offers a prime example of why O'Reilly Automotive needs a stronger policy.  After 2016 Congressional hearings, Wells Fargo agreed to pay $185 million to resolve claims of fraudulent sales practices.  The Wells Fargo Board then moved to claw back $136 million from 2 top executives.  Wells Fargo unfortunately concluded that the CEO had only turned a blind eye to the practice of opening fraudulent accounts and thus failed to attempt any clawback and left $136 million on the table.At minimum this proposal alerts ORLY shareholders that ORLY executives can be richly rewarded now when they are negligent and this proposal thus provides a service to shareholders.  Rich rewards while negligent are the wrong