Company: CLX
Filing Date: 2025-10-07
Form Type: DEF 14A
Source: 0001552781-25-000311
Chunk: 29

Company: CLOROX CO /DE/
Filing Date: 2025-10-07
Form: DEF 14A
Chunk 29
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 goals. Distribution of vested PSUs may be deferred at the executive’s request, provided the deferral is elected at least one year before the vesting date. The performance metric for PSU awards is EP growth. This metric directly supports our corporate strategy and long-term financial goals and correlates to stock price performance over the long term. For purposes of the PSU performance metric, EP is defined as earnings before interest and taxes, adjusted for non-cash restructuring charges, times one minus the tax rate, less capital charge. This definition helps ensure our performance measurement reflects factors within management’s control and is not distorted by non-operating issues. It differs from, and therefore may not reconcile with, the external calculation of EP used in our press releases and SEC filings. For PSUs granted in September 2022 (the 2022 PSUs), the performance metric was EP during the performance period of July 2022 through June 2025 (fiscal years 2023 to 2025). EP performance was measured relative to an EP dollar-value target for the first year of the performance period, tied to the fiscal year 2023 Board-approved budget, and an EP growth rate target of 6% for the second and third years.

| The                                                                        
 Clorox Company 2025 Proxy Statement > Compensation Discussion and Analysis | 57 |

In July 2025, the MDCC certified a final payout for the 2022 PSUs at 133% of target. Strong earnings growth during the performance period was the main driver of the EP results underlying this payout, due to steady gross margin improvements from pricing and cost-saving efforts, partially offset by inflation and reinvestments in the business.

|                                     |        |    Annual 
 EP Growth |             |        |        |
| Threshold                           | Target |   Maximum | Adjusted(1) 
  Actual EP/ |        |        |
| Performance                         
 share units                         |    -0% |     -100% |       -200% |     EP 
 Growth | Payout |
| FY23                                
 Economic Profit Absolute Value ($M) |      $ 
    241 |      $284 |        $305 |   $419 | 200%   |
| FY24                                
 Economic Profit Growth Rate         |    -9% |       +6% |      +13.5% |    59% | 200%   |
| FY25                                
 Economic Profit Growth Rate         |    -9% |       +6% |      +13.5% |