Company: GPI
Filing Date: 2025-03-20
Form Type: PRE 14A
Source: 0001031203-25-000018
Chunk: 32

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-03-20
Form: PRE 14A
Chunk 32
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 transactions, and catastrophic events, such as hailstorms, hurricanes, and snowstorms. Please see Appendix A on page79for an explanation and reconciliation of this non-GAAP measure. |
| Why did the CHR Committee choose this metric?                    |     | The CHR Committee believes adjusted net income from continuing operations is relevant because it measures the immediate impact of operating decisions on Group 1’s overall performance, and includes the impact of items such as tax, interest and foreign exchange fluctuations, which are managed at the Corporate level.                                                                                                                                                                                                                                |
| Why do we use a non-GAAP financial metric for annual incentives? |     | Our non-GAAP performance measures encourage decision-making that considers long-term value creation but does not conflict with our short-term incentive metrics. Adjustments noted above allow for a clearer assessment of business performance and help to align our annual incentive goals with the non-GAAP financial expectations we communicate to shareholders.                                                                                                                                                                                      |

|                                               |     | Parts and Service Gross Profit*                                                                                                                                                                                                                                |
| Why did the CHR Committee choose this metric? |     | The CHR Committee believes parts and service gross profit is an important measure given the contribution of the parts and service line of business to Group 1’s overall profitability and the strategic nature of this line of business in our future success. |

* As reported in our Annual Report on Form 10-K for the year ended December 31, 2024.

For 2024, the CHR Committee set threshold, target and maximum goals for adjusted net income from continuing operations and parts and service gross profit, where threshold was considered achievable, target was considered challenging yet attainable and maximum was considered possible with significant effort.

#### GROUP 1 AUTOMOTIVE2025 PROXY STATEMENT39
How We Performed on Our 2024 Financial Performance Metrics

The CHR Committee established goals for adjusted net income from continuing operations and parts and service gross profit at threshold, target and maximum performance levels for the Company. Performance below the threshold level results in no payout under the AIP. As discussed earlier in “The CDK Cybersecurity Incident” on page 4 , the CHR Committee determined it was appropriate to further adjust adjusted net income from continuing operations in light of effectiveness of management and the Company in navigating the outage, preventing the loss of customer or other data and being the first public retailer to recover operations.

|                                                 |     |    | Weight |     |   |       | Threshold |     |   |       | Target  |     |   |       | Maximum |     | 2024 Results