Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 51

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 51
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 awards. Equity grants to employees typically occur in July or August of each year and, consistent with this practice, the fiscal 2025 equity grants were primarily made in August 2024. For fiscal 2025, the Committee again included certain Company personnel other than NEOs in the long-term incentive program and granted 78,437 performance-based RSUs and 40,606 service-based RSUs to these individuals to provide additional performance and retention incentives, as well as shareholder alignment incentives, to a larger group of key personnel. The aggregate target grant of 315,026 RSUs to all employees in fiscal 2025 represented what the Company believes to be a reasonable burn rate (number of shares granted as a percent of common shares outstanding) of approximately 2.5% at a target award level when compared to industry peers and the broader market. The units will also fully vest at the target level for each award recipient upon a qualifying termination of employment in connection with a change of control (a “double trigger” change of control feature) or the termination of the recipient’s employment by reason of the recipient’s death or disability.

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The equity awards granted under the fiscal 2025 long-term incentive program to our NEOs are reflected in the Summary Compensation Table in the “Stock Awards” column. In addition, for our NEOs who received grants under the fiscal 2023, 2024, and/or fiscal 2025 long-term incentive programs, the number of unearned units shown as not vested as of the end of fiscal 2025 (which includes service-based awards granted in fiscal 2023 for the three-year vesting period ended July 11, 2025, which had not yet vested as of the end of fiscal 2025), as well as the market value of such unearned units, are reflected in the “Outstanding Equity Awards at Fiscal Year-End” table. Shares of stock that were acquired by NEOs in fiscal 2025 pursuant to the vesting of long-term, service-based RSU awards are shown in the “Option Exercises and Stock Vested” table.

No performance-based RSUs under the fiscal 2025 long term incentive program are currently expected to vest for any NEO, as operating performance for each reporting unit for the applicable three-year performance period is expected to be below entry (threshold) level based on current market and industry conditions. In addition, no performance-based RSUs under the fiscal 2024 long term incentive program vested or are expected