Company: GGG
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052581
Chunk: 20

Company: GRACO INC
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 20
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 the Governance Committee concluded that current non-employeedirector retainer compensation was approximately at the median of the peer group, and that non-employeedirector equity compensation was approximately at the 75 thpercentile of the peer group, so no changes were proposed for 2024. Our Governance Committee requested that the Graco Compensation Department conduct a peer group comparison of director compensation and present such data at its February 2025 meeting. The peer companies used for the 2025 benchmarking study matched the peer group identified for executive compensation on page 23 of the Compensation Discussion and Analysis section of this Proxy Statement. In reviewing the peer group comparison, the Governance Committee concluded that current non-employeedirector retainer and equity compensation was approximately at the median of the peer group. No changes were proposed for 2025. Share ownership guidelines for our directors require each of our non-employeedirectors to own a minimum of approximately five times the total value of their annual retainers in Company stock. Shares of common stock directly and beneficially owned, as well as deferred stock shares, are used to calculate each director’s ownership level; stock options are not used. Directors have five years from their initial date of appointment to reach the minimum ownership level. All of our directors who have served for at least five years exceed this ownership requirement. In February 2001, our Board terminated the retirement benefit for non-employeedirectors, which provided that, upon cessation of service, a non-employeedirector who has served for five full years or more will receive payments for five years at a rate equal to the director’s annual retainer in effect on the director’s last day of service on the Board. The annual retainer calculation is set at the rate then in effect for the non-Chairannual retainer and does not include Committee Chair retainer fees. Such retirement payments will be prorated and made quarterly. Mr. Mitau satisfied the service requirement in 2001 and retired from our Board effective April 26, 2024, entitling him to payments in accordance with this retirement benefit. Payments will be made in accordance with this retirement benefit to Ms. Morfitt, who satisfied the service requirement in 2001, upon her retirement. Director Compensation Table for Fiscal Year Ended December 27, 2024 The following table summarizes the total compensation paid to or earned by our non-employeedirectors for their service during the fiscal year ended December 27, 2024:

| Name                   |     | Fees