Company: DXPE
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0001020710-25-000087
Chunk: 36

Company: DXP ENTERPRISES INC
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 36
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| LEVERAGE SCALE:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 We leverage our scale by optimizing our business segments using technology, shared services, where appropriate, and best practices. Our scale enables us to achieve cost efficiencies by maximizing our purchasing power and utilizing economies of scale through our supply chain channel.  During the recent pandemic, we were able to continue to operate without any major disruptions to our business, which highlights the power of our scale due our many shared resources.                                                                 |
| Growing sales and leveraging our scale increases cash flow, which enables us to:                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 ALLOCATE CAPITAL:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 We continue maximizing capital investment opportunities in a disciplined and balanced manner to deliver the highest relative return. Our priorities for investing our capital are: 1) investing in acquisitions and organically where appropriate; 2) managing debt; and 3) returning cash to our shareholders via share repurchases. In 2024, we invested capital of $185.4 million, including the investment of $156.6 million in acquisitions and organic opportunities, and returning $28.8 million to shareholders through share repurchases. |

#### Role of the Independent Consultant
Engagement of NFP Compensation Consulting ("NFP") (formerly referred to as Longnecker & Associates (“Longnecker”))

The Compensation Committee retained the services of NFP, an external independent executive compensation consultant, to assist the Compensation Committee in its review of executive compensation practices, including the competitiveness of pay levels, program design, market trends, and technical considerations.

#### DXP ENTERPRISES, INC. 2025 PROXY STATEMENT35
Pursuant to SEC rules, the Compensation Committee has assessed the independence of NFP and, in 2021, the Committee concluded that no conflict of interest exists that would prevent Longnecker from providing independent advice to the Compensation Committee. Longnecker does not provide any consulting advice to the Company, or any of its subsidiaries, outside the scope of executive compensation and will not do so without the prior consent of the Compensation Committee chair. NFP met with the Compensation Committee chair and the Compensation Committee outside the presence of management.

#### Market Compensation Data Analysis
In general, NFP provided the Company with external pay comparison data. The Compensation Committee recognizes that over-reliance on external comparisons can be of concern, and the Compensation Committee is mindful of the value and limitations of comparative data. Therefore, although the Compensation Committee used comparative data provided by NFP as one input in making certain of its NEOs