Company: BBY
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0001140361-25-016935
Chunk: 82

Company: BEST BUY CO INC
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 82
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 On April 18, 2025, upon recommendation of the Compensation Committee and subject to shareholder approval, our Board adopted Amendment No. 1 to the 2020 Plan (“Amendment No. 1”). Amendment No. 1 increases the maximum number of shares of common stock available for grant under the 2020 Plan by 12,030,000 shares. As of February 1, 2025, 9,535,429 shares are available for grant under the 2020 Plan (excluding the 12,030,000 additional shares that would be available if shareholders approve Amendment No. 1). The complete text of Amendment No. 1 is attached as Annex A to this Proxy Statement. Reasons for Amendment No. 1 When the 2020 Plan was approved in 2020, the Compensation Committee anticipated that the number of authorized shares would be sufficient to grant share-based compensation awards for approximately the next two years. This estimation accounted for various factors, including future stock prices, competitive market practices for award sizes and considerations related to attracting and retaining employee talent. In practice, the authorized shares lasted for approximately five years, which was beyond the expected range. This outcome resulted from managing our burn rate. Our Board believes that the 2020 Plan and our overall stock-based compensation program is essential in attracting, retaining and motivating highly qualified executive officers and other employees and non-employee directors to enhance the success of the Company. Our Board believes that the proposed increase in the maximum number of shares of common stock to be available under the 2020 Plan is necessary for the Company to continue to experience these benefits. Further, unless Amendment No. 1 is adopted, we will need to curtail grants of stock incentive awards to executive officers, other employees and non-employee directors, which would put us at a competitive disadvantage in recruiting and retaining talent, and also make it more difficult for us to align employee interests with our shareholders. Accordingly, the Board recommends adoption of Amendment No. 1 in order to continue granting awards at market-competitive levels to our executive officers, other employees and non-employee directors. Historical Equity Granting Practices and Voting Power Dilution The 2020 Plan is an omnibus stock incentive plan that allows us to grant stock options, stock appreciation rights (“SARs”), restricted stock and restricted stock units (“RSUs”) (which may be service-based, performance-based, or both), dividend equivalents and other stock-based awards to employees, officers, consultants, independent contractors, advisors and non-employee directors