Company: GWW
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001104659-25-021496
Chunk: 58

Company: W.W. GRAINGER, INC.
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 58
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 Review competitive compensation benchmarking data at the 25th, 50thand 75thpercentiles of the market.                                                                                 
 Evaluate considerations such as individual and Company performance, internal equity, management’s recommendation and the NEO’s overall experience, replaceability and unique skills.  | ​ | ​ | ​ | Review the final assessment and analysis of NEO compensation versus comparator group and survey data to ensure relative competitiveness of the Company’s compensation practices. 
 Evaluate recommendations for base salaries and changes to the structure and targets of short and long-term incentive programs are made in part based on market data.             
 CEO Pay—Reviewed and recommended by the Compensation Committee.                                                                                                                  
 NEO Pay—Reviewed by the Chairman and CEO, reviewed and recommended by the Compensation Committee.                                                                                | ​ |
| ​ | Action:Reviewed and approved by the Compensation Committee inJuly.                                                                                                                                               | ​ | ​ | ​ | Action:Reviewed by the Compensation Committee inOctober.                                                                                                                              | ​ | ​ | ​ | CEO Pay—Approved by independent directors in executive session without management present inFebruary.                                                                            
 NEO Pay—Approved by the Board inFebruary.                                                                                                                                        | ​ |

Compensation Comparator Group The Company’s compensation programs are regularly benchmarked against a Compensation Committee-approved comparator group of companies that are similar to the Company in size and complexity and nationally recognized compensation surveys. The Company performs these studies to understand current market practices and to provide a reference point for compensation discussions. Every year, the Compensation Committee determines a compensation comparator group of companies and undertakes a study of total compensation paid to executives occupying similar positions with similar duties and responsibilities in the comparator companies. All elements of compensation are valued and considered when determining the relative competitiveness of the Company’s compensation practices. Consistent with this practice, a comparator group compensation study was conducted in 2023 to determine 2024 compensation (the “2024 Compensation Study”). The 2024 comparator group consists of 18 companies that are relatively similar in complexity and size to Grainger and represent the types of major companies with which Grainger historically competes for executive talent. The companies that were evaluated for the 2024 Compensation Study were approximately within a range of 0.4 to 2.5 times Grainger’s annual revenue. The competitive market for executive talent includes companies both within and outside the same industry or sector as the Company. Most of the Company’s publicly traded direct competitors tend to be too small in sales or scope of operations for direct compensation comparisons with the Company. Including a broader range of companies provides a more representative